The IMF Executive Board releasing its report after the conclusion of Article IV consultations with
The IMF Executive Board concluded the Article IV consultation and second Post-Program Monitoring discussion with
Under IMF's Articles of Agreement, usually every year an IMF staff team visits the country to hold bilateral discussions with officials the country's economic developments and policies and upon return they prepare a report, which is the basis for discussion by the Executive Board.
According to the report released Tuesday,
Real GDP growth is expected to remain robust at about 7 percent in 2014, while inflation is likely to remain in the mid-single digits.
The government's target of further reducing the fiscal deficit to 5.2 percent of GDP should allow for even more reduction of public debt, the IMF said. With a continued robust export performance, the current account deficit is expected to narrow further and allow for some additional accumulation of international reserves.
The IMF Executive Board said monetary policy has been accommodative, but private credit growth has been slow. Given rising economic growth, the IMF observed that the fiscal stance for 2014 as appropriate, but raised concern about the composition of further consolidation.
The Board noted that the government's ability to curtail spending to meet fiscal objectives has enhanced but considering the investment needs the IMF was of the view that spending cuts may have reached their effective limit, and the government needs to increase revenues.
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