Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

September 19, 2017

Electronic Access:

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Summary:

The macroeconomic outlook remains weak. Public debt remains elevated, at around 100 percent of GDP, despite a recent debt restructuring agreement with private external bondholders. Growth is projected at just under 2 percent over the medium term. The envisaged tightening of the fiscal stance reflected in the budget for FY2017/18, of 4 percentage points of GDP, is an important first step toward fiscal consolidation, but would not be sufficient to put public debt on a decisive downward trajectory. Withdrawal of Correspondent Banking Relationships (CBRs) and low capital buffers, particularly in a systemic bank, are key threats to financial stability.

Series:

Country Report No. 17/286