Review of Data Provision to the Fund for Surveillance Purposes

REVIEW OF DATA PROVISION TO THE FUND FORSURVEILLANCE PURPOSES IMF staff regularly produces papers proposing new IMF policies, exploring options forreform, or reviewing existing IMF policies and operations. The following documents havebeen released and are included in this package: •APress Releasesummarizing the views of the Executive Board as expressed during itsApril 1 consideration of the staff report. •TheStaff Report, prepared by IMF staff and completed on February 20 for theExecutive Board’s consideration on April 1.•TwoStaff Supplements, one titledReview of Data Provision to the Fund forSurveillance Purposes—Background Paper, and the othersetting out the proposeddecision. The IMF’s transparency policy allows for the deletion of market-sensitive information andpremature disclosure of the authorities’ policy intentions in published staff reports andother documents. Electronic copies of IMF Policy Papersare available to the public fromhttp://www.imf.org/external/pp/ppindex.aspx International Monetary FundWashington, D.C. IMF Executive Board Concludes2024Review of DataProvision to the Fund FOR IMMEDIATE RELEASE •TheReview ofData Provision to the Fund for Surveillance Purposestook placein thecontext ofprofound shifts in the global economy. Trends such as rising global debt levels,inflationary pressures,increasingly complex financial systems, and multi-speed growthtrajectories highlight the need for adequate macroeconomic and financial data to informanalysis and policymaking. •The Review expands the minimum set of national data that members are required toprovide to the Fundfor the effective discharge of its duties. This data will help enhancemacroeconomic analysis and adapt policy advice to the continuously evolving economicand financial landscape. •Enhanced data provision, together with a strengthened framework for assessing dataadequacy, will support even-handedness in surveillance, reduce blind spots, and furtherimprove the effectiveness of Fund surveillance. Washington, DC:OnApril 1,2024, the Executive Board of the International Monetary Fund(IMF) concluded a review of the policy on Data Provision to the Fund for SurveillancePurposes (DPF). The review took place againstthe backdrop of profound shifts in the globaleconomy, such as rising global debt levels,inflationary pressureswithattendant tightmonetary policies,increasingly complex financial systems, and multi-speedgrowthtrajectories. These trends highlight the need for adequate macroeconomic and financial datato inform analysis and policymaking. The minimum list of indicators that members are required to provide to the Fund under ArticleVIII, Section 5 of the Fund’s Articles of Agreement waslast updated by the Executive Board in2004. Since then, Fund surveillance needs have continued to evolve given global economicdevelopments. Guided bythe 2021 Comprehensive Surveillance Review, the DPF review introduces asubstantial update to the overall envelope of data that members are required to provide to theFund in the areas of public sector, foreign exchange intervention, and macrofinancialindicators. Most Fund members already provide these indicators voluntarily but addressing theremaining data gaps would ensure even-handedness in surveillance, reduceblind spots, andthereby further improve the effectiveness of Fund surveillance. Effective surveillance also requires a more structured and transparent assessment of dataadequacy for surveillance. This reviewintroduceda strengthened assessment framework,which will facilitate policy dialogue with the authorities on data issues and improveprioritization of capacity development efforts. This will also enhance the integration ofsurveillance and capacity development activities. The DPF’s key findings and recommendationsare reflected the Main Paper[insert hyperlink],while the Background Paper [insert hyperlink] elaborates on technical and legal aspects ofdata provision and reports results from surveys of country authorities and IMF staff. Executive Board Assessment1 Executive Directors welcomed the conclusion of the Review of Data Provision to the Fund forSurveillance Purposes. They recalled that, during the meeting of March 2022, they hadalready endorsed the introduction of a more structured and transparent assessment of dataadequacy for surveillance, the approach to deal with outdated data requirements, and theintroduction of mandatory provision of macrofinancial indicators. Directors also recalled theirrecent endorsement of the use of the revised data adequacyassessment framework startingin February 2024. Noting that the list of mandatory data series was last updated in 2004, Directors concurredthat adapting the perimeter of mandatory data provision to the evolving global economy iscrucial for ensuring the effectiveness and evenhandedness of Fund surveillance. Given thepriorities identified in the 2021 Comprehensive Surveillance Review, they generally supportedupdating and expanding the overall