Republic of Nauru: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Nauru
IMF Staff Country Reports, January 29, 2020
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- Republic of Nauru: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Nauru
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Bibliographic details
- Published: January 29, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513528434.002
Key vulnerabilities and development constraints
- Nauru remains vulnerable to climate change.
- The economy has a narrow economic base and limited capacity.
- Development challenges are increased by unavailability of land and high incidence of noncommunicable diseases.
Growth performance and outlook
- Growth was stronger than expected in FY2018 but slowed in FY2019.
- The outlook is subdued, with growth expected to reach 2 percent in the medium term.
Fiscal outlook, risks, and financing
- Revenues are projected to decline, necessitating a fiscal adjustment.
- Fiscal adjustment is required to:
- avoid a breach of the fiscal anchor,
- contain debt, and
- maintain the Trust Fund contributions.
- Risks are skewed to the downside and include:
- scaling down of Regional Processing Centre activity and revenues,
- volatile fishing revenues,
- climate change, and
- delays in fiscal and structural reforms.
Policy recommendations and priorities
- Identify and develop new sources of economic growth and income to support Nauru’s development agenda.
- Implement near-term policies to support private sector activity, including:
- financial sector development,
- state-owned enterprises reform, and
- land rehabilitation.
- Improve the effectiveness of education and health spending to meet development goals.
Republic of Nauru: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Nauru
Content in this bundle
- 1. Trust Fund