Guidance Note for Surveillance Under Article IV Consultations

Abstract

Fund surveillance continuously adapts to the evolving economic and financial landscape.The 2021 Comprehensive Surveillance Review laid out priorities for Fund surveillance, both in terms of content and modalities.Timely and topical policy advice is key to ensuring traction with Fund members.Fund surveillance will need to remain focused and selective, prioritizing issues and policies that are most relevant to member countries.This note provides guidance to country teams for surveillance under Article IV consultations superseding the 2015 Guidance Note and its supplement.• Scope and requirements.The note lays out the coverage of, and formal requirements for, Article IV consultations and staff reports.It also outlines best practices aimed at enhancing the traction of Fund analysis and policy advice.• Priorities and focus.The 2021 Comprehensive Surveillance Review identified four surveillance priorities: (i) confronting risks and uncertainties, (ii) preempting and mitigating spillovers, (iii) ensuring economic sustainability, and (iv) adopting a more unified approach to policy advice.The note also provides guidance on sharpening the focus and selectivity of Article IV staff reports.• Policies.The note discusses the content of surveillance in the areas of fiscal policy, macrofinancial analysis and financial policies, monetary policy, external sector policies, and macrostructural policies.• Applications.The note considers several applications of such policies, such as with respect to the Integrated Policy Framework and climate change.• Process and procedures.The note describes the Article IV consultation cycle and process; lays out drafting and publication guidelines for staff reports; and covers the treatment of confidential information.This note should not be viewed as a checklist for what to cover in Fund surveillance.Country teams are expected to exercise judgment with respect to coverage