This note is a user’s manual for the DIGNAD toolkit, an application aimed at facilitating the use of the DIGNAD model (Debt-Investment-Growth and Natural Disasters) by economists with no to little knowledge of MATLAB and Dynare via a user-friendly Excel-based interface. DIGNAD is a dynamic general equilibrium model of a small open economy developed at the International Monetary Fund. The model can help economists and policymakers with quantitative assessments and policy scenario analysis of the macrofiscal effects of natural disasters and adaptation infrastructure investments in low-income developing countries and emerging markets. DIGNAD is tailored to disaster-prone countries, which typically are small countries or low-income countries that are particularly exposed to large climate shocks—countries where shocks that can disrupt the entire economy are frequent. However, DIGNAD can be relevant also for larger countries that may potentially be exposed to extreme climatic disasters in the future.

Angola’s economic recovery in 2021/22 was nearly halted in 2023 by a double shock, as both oil production and prices weakened, and the debt moratorium ended. In response, the authorities took significant fiscal consolidation measures, including by cutting fuel subsidies, and tightened monetary policy. Angola continues to face significant challenges, including debt vulnerabilities and the need to diversify the economy as oil production declines over the long term. The authorities’ reform agenda, including the new 2023–27 National Development Plan, is focused on these challenges.

Rwanda: Selected Issues

Pakistan: Selected Issues

This Supplement provides additional guidance to IMF and World Bank staff on the implementation of the Bank-Fund Debt Sustainability Framework for Low Income Countries (LIC-DSF) approved in 2017 by the IMF and World Bank Boards. It complements the 2018 Bank-Fund Guidance Note on the LIC-DSF. Since the publication of the 2018 Guidance Note, several issues have increased in significance, requiring more tailored guidance on the implementation of the LIC-DSF to address these issues, including: • Greater prominence of risks from climate change. • Further increase in borrowing on commercial terms and in domestic markets. • Increased number and complexity of debt restructurings. This Supplement to the 2018 Guidance Note on the LIC-DSF provides further guidance on how to address these issues within the current framework. All aspects of the 2018 LIC-DSF Guidance Note remain in effect, except as modified in this Supplement.

Guinea: Selected Issues

Context and outlook. Economic growth is recovering from the impact of the unfavorable global economic environment and domestic factors. Growth is expected to continue strengthening, supported by improvements in the business environment and subsiding global commodity prices. Inflation is projected to remain within the central bank’s target range. Growth-friendly fiscal consolidation is underway, anchored by the ECF arrangement, and the current account deficit is narrowing reflecting fiscal consolidation, easing commodity prices, and tight external financing conditions. The medium-term outlook is positive contingent on implementation of the authorities’ reform agenda, anchored by the ECF arrangement. Climate change poses a major threat, as Tanzania is highly vulnerable but not well-prepared to address the effects of climate change.