Republic of Palau : 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau

Author/Editor:

International Monetary Fund. Asia and Pacific Dept

Publication Date:

February 5, 2019

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

These Article IV Consultation discussions with the Republic of Palau focused on ensuring long-term fiscal sustainability, making potential growth more resilient and sustainable, preserving financial stability, and facilitating credit extension. The consultation discussions also highlight the main economic policy priorities for Palau: develop a medium-term fiscal framework and strategy to help manage fiscal risks and the expiration of the Compact grants, raise public investment, protect social spending, make growth more resilient and sustainable through other reforms, and preserve financial stability and integrity. The current fiscal policy approach is based on the legal requirement to maintain a balanced or surplus cash flow for various parts of the budget. While this fiscal policy strategy has resulted in overall budget surpluses and a decline in net debt, the move to a medium-term fiscal framework and strategy would help Palau address future challenges.

Series:

Country Report No. 19/43

Subject:

English

Publication Date:

February 5, 2019

ISBN/ISSN:

9781484397916/1934-7685

Stock No:

1PLWEA2019001

Format:

Paper

Pages:

63

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