| Abstract: The Report presents a coherent medium-term macroeconomic framework and credible efforts toward implementing the poverty reduction strategy, particularly in light of the updates to the Poverty Reduction Strategy Paper (PRSP). Higher growth rates than the historical trend will be necessary to reach most MDGs set for 2015. The staffs underscore the need for continued prudent macroeconomic policies, complemented by structural reforms to raise the competitiveness of the economy. Sustained macroeconomic stability and broad-based economic growth continue to be key elements for achieving policy objectives and strategy targets. The authorities have made important progress in addressing PRSP implementation difficulties. Progress has been made in several areas, namely in: (i) reaching agreement, ad referendum, on a Poverty Reduction and Growth Facility (PRGF) program supported by the IMF and working toward attaining critical prior actions, such as the congressional approval of the wage law (ii) reviewing PRSP implementation and making the appropriate updates to policies, targets, and programmatic priorities through a participatory process consulting key stakeholders (iii) significant improvements are being adopted by SIAFI, although further efforts are needed in financial management and procurement and (iv) initiating a Poverty and Social Impact Analyses (PSIA) on the tax reform. |
