Tuvalu: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tuvalu
IMF Staff Country Reports, July 21, 2023
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- Tuvalu: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tuvalu
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Bibliographic details
- Published: July 21, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400250491.002
Economic impact of COVID-19 and near-term outlook
- Real gross domestic product growth was -4.3 percent in 2020.
- A successful vaccination strategy allowed Tuvalu to lift coronavirus disease (COVID) containment measures at the end of 2022.
- Growth is expected to accelerate as:
- the lifting of COVID restrictions leads to the resumption of construction activity,
- shipping bottlenecks ease,
- the trade and hospitality sectors recover.
Structural vulnerabilities and constraints
- Tuvalu is among the countries most vulnerable to the effects of climate change.
- The economy is remote and dominated by the public sector.
- The revenue base is narrow, with reliance on donor commitments complicating fiscal planning.
- At-the-border containment measures led to delays in much-needed infrastructure projects, exacerbating the economic setback from the pandemic.
Fiscal and policy recommendations
- Promote fiscal sustainability and build buffers by:
- mobilizing revenues,
- rationalizing current expenditures.
- Addressing significant structural challenges is made more difficult by the economic setback due to the pandemic, implying the need for a coordinated policy approach that balances recovery support with medium-term fiscal consolidation.
Thematic coverage and keywords
- Subject areas: Debt sustainability analysis, Environment, External debt, International organization, Monetary policy, Natural disasters, Public debt, Revenue administration.
- Keywords highlighted in the report: adaptation plan, Asia and Pacific, CPI expenditure weight, Debt sustainability analysis, fund advice, fund surveillance, Global, Natural disasters, Pacific Islands, Tuvalu's legal tender.
IMF Staff Country Report: Tuvalu: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tuvalu
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