- The Review of Data Provision to the Fund for Surveillance Purposes took place in the context of profound shifts in the global economy. Trends such as rising global debt levels, inflationary pressures, increasingly complex financial systems, and multi-speed growth trajectories highlight the need for adequate macroeconomic and financial data to inform analysis and policymaking.
- The Review expands the minimum set of national data that members are required to provide to the Fund for the effective discharge of its duties. This data will help enhance macroeconomic analysis and adapt policy advice to the continuously evolving economic and financial landscape.
- Enhanced data provision, together with a strengthened framework for assessing data adequacy, will support even-handedness in surveillance, reduce blind spots, and further improve the effectiveness of Fund surveillance.
Washington, DC: On April 1, 2024, the Executive Board of the International Monetary Fund (IMF) concluded a review of the policy on Data Provision to the Fund for Surveillance Purposes (DPF). The review took place against the backdrop of profound shifts in the global economy, such as rising global debt levels, inflationary pressures with attendant tight monetary policies, increasingly complex financial systems, and multi-speed growth trajectories. These trends highlight the need for adequate macroeconomic and financial data to inform analysis and policymaking.
The minimum list of indicators that members are required to provide to the Fund under Article VIII, Section 5 of the Fund's Articles of Agreement was last updated by the Executive Board in 2004. Since then, Fund surveillance needs have continued to evolve given global economic developments.
Guided by the 2021 Comprehensive Surveillance Review, the DPF review introduces a substantial update to the overall envelope of data that members are required to provide to the Fund in the areas of public sector, foreign exchange intervention, and macrofinancial indicators. Most Fund members already provide these indicators voluntarily but addressing the remaining data gaps would ensure even-handedness in surveillance, reduce blind spots, and thereby further improve the effectiveness of Fund surveillance.
Effective surveillance also requires a more structured and transparent assessment of data adequacy for surveillance. This review introduced a strengthened assessment framework, which will facilitate policy dialogue with the authorities on data issues and improve prioritization of capacity development efforts. This will also enhance the integration of surveillance and capacity development activities.
The DPF's key findings and recommendations are reflected the Main Paper [insert hyperlink], while the Background Paper [insert hyperlink] elaborates on technical and legal aspects of data provision and reports results from surveys of country authorities and IMF staff.
Executive Board Assessment[1]
Executive Directors welcomed the conclusion of the Review of Data Provision to the Fund for Surveillance Purposes. They recalled that, during the meeting of March 2022, they had already endorsed the introduction of a more structured and transparent assessment of data adequacy for surveillance, the approach to deal with outdated data requirements, and the introduction of mandatory provision of macrofinancial indicators. Directors also recalled their recent endorsement of the use of the revised data adequacy assessment framework starting in February 2024.
Noting that the list of mandatory data series was last updated in 2004, Directors concurred that adapting the perimeter of mandatory data provision to the evolving global economy is crucial for ensuring the effectiveness and evenhandedness of Fund surveillance. Given the priorities identified in the 2021 Comprehensive Surveillance Review, they generally supported updating and expanding the overall envelope of mandatory data provision in the areas of public sector, foreign exchange interventions (FXI), and swaps and repos among central banks, while reiterating their support for expanding macrofinancial data requirements. Directors acknowledged that the streamlined proposals on data on public sector, foreign exchange interventions, and central bank swaps and repos, represent a compromise that aims to enhance the information that the Fund needs for surveillance, while taking into consideration the key concerns raised by Fund members during the Review.
Directors endorsed the expansion of the mandatory provision of public sector data, as proposed in the staff paper. Noting the capacity constraints in some Fund members for producing these indicators, Directors called on staff to work closely with the authorities to identify technical assistance priorities that would help countries address these constraints over time.
Directors generally agreed with the proposal, as outlined in the staff paper, to introduce mandatory provision of data on foreign exchange interventions. They also endorsed the mandatory provision of information on central bank swaps and repurchase agreements. Many Directors noted, however, that the data on FXI and on swaps and repos can be market sensitive and decontextualized. In this context, Directors called on staff to ensure the upmost care when handling confidential information to avoid undermining the authorities' policy implementation, while also building trust in the revised data provision policy. In addition, Directors generally saw merit in introducing a secured electronic platform that members may decide to use for transmission to the Fund of mandatory data considered confidential, while stressing the need for cost‑effectiveness and efficiency in the implementation of this platform.
Directors endorsed the proposed transition periods for introducing the new data provision requirements and the general guidance on frequency and timeliness for the new data to be provided. They emphasized the need to consider capacity constraints and noted that, even after the updated data requirements come into force, the lack of capacity to provide the data to the Fund would not lead to a breach of obligation; although members would be expected to develop the needed statistical capacity over time. In this context, Directors called for continued outreach to Fund members, including provision of tailored capacity development assistance to those countries where data provision capacity is constrained. Capacity development needs will also be informed by the new data adequacy assessment framework.
Directors looked forward to the next Review of Data Provision to the Fund for Surveillance Purposes in 5 years or later, as appropriate.
[1] At the conclusion of the discussion, the Managing Director, as Chair of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country's authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.
