World leaders attending this week’s Summit for a New Global Financing Pact praised the African Development Bank for finding a solution that would enable rich countries to reallocate part of their Special Drawing Rights (SDR) to low-income countries through multilateral development banks.
(From right) AfDB President Akinwumi Adesina with Madagascar President Andriy Rajoelina, Comoros President Azali Assoumani, Ghana President Nana Akufo-Addo; Mauritania President Mohamed Ould Ghazouani; Prime Minister of Cote d’Ivoire Patrick Achi; Kenya President William Ruto, and Democratic Republic of the Congo Prime Minister...
Country Report No. 2023/218
Country Report No. 2023/219
The economy sustained its dynamic recovery from the pandemic into 2022. GDP surpassed the pre-pandemic level in the first quarter and growth averaged 6.7 percent for the year—among the highest in the euro area. The momentum continued through early 2023 with growth at 2.5 percent (year-on-year) in Q1. While headline inflation peaked in late 2022, core inflation has been stickier amid limited economic slack, high profit margins and tight labor markets. Wage growth has accelerated, partly reflecting minimum wage hikes and labor shortages.
Country Report No. 2023/220
The Government of Barbados announced at the Summit for a New Global Financing Pact in Paris an integrated package of innovative initiatives to accelerate its transition to net zero, boost resilience, enfranchise workers, and draw in private sector investment while prudently managing public debt levels. These initiatives build on the ongoing climate policy reforms, supported by the Resilience and Sustainability Facility with the International Monetary Fund, which are expected to play a catalytic role in mobilizing private and public sector financing for climate projects.
The Icelandic economy has shown remarkable resilience and rebounded quickly from the multiple shocks in recent years. Real GDP grew by 6.4 percent in 2022, the fastest since 2007, on the back of a strong rebound in tourism and domestic demand, and higher incomes from an improvement in the terms of trade. The economy is currently operating well above potential which, together with high import and house prices, has pushed inflation significantly above target, and contributed to external imbalances. The Central Bank of Iceland has raised the policy rate by 800 basis points between April 2021 and May 2023, and tightened macroprudential measures. Fiscal policy was contractionary in 2022, though not enough to sufficiently slow domestic demand, and the underlying fiscal stance deteriorated.
