Developments in individual OECD and selected non-member economies

摘要

The economy is in recession against the background of internal and external imbalances. Uncertainty about future policy priorities has triggered capital outflows and a strong currency depreciation. The resulting liquidity challenges have led to a re-profiling of short-term debt and the reinstatement of currency controls. Recent volatility is weighing on growth and increasing unemployment. Monetary policy will need to remain tight to reduce inflation, which currently exceeds 50%. Strengthening the independence of the central bank would make monetary policy more effective. Reducing the fiscal deficit will be key to lowering public debt, but preserving the real value of well-targeted social benefits remains important to cushion the impact of the recession on vulnerable groups. Reforms of taxes, regulations and administrative procedures could boost productivity. Lower trade barriers, including a phase-out of export taxes as scheduled, are key to foster a stronger integration into the global economy.