Abstract

The individual economy assessments use a wide range of methods to form an integrated and multilaterally consistent view on economies’ external sector positions. These methods are grounded in the latest vintage of the External Balance Assessment (EBA), developed by the IMF’s Research Department to estimate desired current account balances and real exchange rates.1 Model estimates and associated discussions on policy distortions (see also Box 3.1 for an example) are accompanied by a holistic view of other external indicators, including capital and financial account flows and measures, foreign exchange intervention and reserves adequacy, and foreign asset or liability positions.2