Republic of Palau: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau
IMF Staff Country Reports, December 9, 2021
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- Republic of Palau: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau
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Bibliographic details
- Published: December 9, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781616357184.002
Economic impact of COVID-19 and near-term outlook
- Border closure and the suspension of commercial flights curtailed tourist arrivals.
- Real GDP contracted by 9.7 percent in FY2020.
- The economic contraction is estimated to have deepened in FY2021.
- A gradual recovery is expected in FY2022 as tourism activities resume.
Fiscal position and public debt
- The economic fallout of the pandemic and the cost of the fiscal response have led to a sharp deterioration of the fiscal position.
- There has been a rapid increase in public debt.
- Palau’s public debt remains sustainable.
- The high share of concessional loans from multilateral creditors in Palau’s external debt is an important risk mitigating factor.
Vulnerabilities and risks
- Palau is vulnerable to climate change and natural disasters.
- The report’s subject tags include: Climate change, COVID-19, Economic sectors, Environment, Fiscal consolidation, Fiscal policy, Health, International organization, Monetary policy, Public debt, Tourism.
Republic of Palau: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau (IMF Staff Country Reports 2021, 263).
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