Tuvalu: 2010 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Tuvalu
IMF Staff Country Reports, February 8, 2011
Source details
- Canonical URL
- Tuvalu: 2010 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Tuvalu
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Bibliographic details
- Published: February 8, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455216703.002
Recent economic developments
- Major construction projects to build a wharf and a power station have been completed.
- Seafarer employment—Tuvalu’s main foreign exchange earning source for the private sector—is weak.
- The Consolidated Investment Fund (CIF) available for budget financing will be depleted.
- Freezing wages and reducing travel costs will also be important.
Fiscal outlook and budget financing
- The Consolidated Investment Fund (CIF) available for budget financing will be depleted.
- Policy emphasis is on measures to ensure fiscal sustainability.
Banking sector and private-sector development
- Improvements in the banking sector and credit culture will help to support private-sector development.
Policy recommendations and priorities
- Freeze wages.
- Reduce travel costs.
- Improve banking sector performance and credit culture to support private-sector development.
- Executive Directors agreed to ensure fiscal sustainability.