Overview of Refinements to the EBA-Lite Methodology: EBA-Lite 4.0 Update

This paper presents the 2026 update to the EBA-Lite methodology (EBA-Lite 4.0), with refinements to both the current account (CA) and real effective exchange rate (REER) models. The objective is to strengthen empirical robustness, improve the methodology’s relevance, and enhance consistency with the broader EBA framework while preserving a design tailored to the structural features of EBA-Lite economies, which are predominantly emerging market and low-income economies and represent almost three quarters of all IMF members’ economies.