Policy Papers

EBA-Lite 3.0 Model and Methodology

November 18, 2024

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Format: Chicago

International Monetary Fund. Strategy, Policy, & Review Department "EBA-Lite 3.0 Model and Methodology", Policy Papers 2024, 054 (2024), accessed November 23, 2024, https://doi.org/10.5089/9798400294273.007

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Summary

The EBA-lite methodology is a key input in external sector assessments for over three-quarters of IMF member countries, representing a broad set of emerging and low-income economies. The EBA-lite methodology is refined periodically, and this paper provides a comprehensive discussion of the current EBA-lite econometric models and framework which is referred to as EBA-lite 3.0. The most recent refinements to the EBA-lite models included data updates, improved construction of model variables, and exclusion of non-robust variables. This paper also updates operational guidance on the complementary EBA-lite tools, such as the external sustainability approach and the modules for commodity exporters.

Subject: Balance of payments, Current account, Current account balance, External balance assessment (EBA), External balance assessment lite (EBA-Lite), External position, Foreign exchange, Real effective exchange rates

Keywords: Current account, Current account balance, External balance assessment (EBA), External balance assessment lite (EBA-Lite), Global, Real effective exchange rates

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