Tuvalu: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tuvalu

July 21, 2023

Preview Citation

Format: Chicago

Tuvalu: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tuvalu, (USA: International Monetary Fund, 2023) accessed October 6, 2024

Summary

The 2023 Article IV Consultation discusses that a successful vaccination strategy allowed Tuvalu to lift coronavirus disease (COVID) containment measures at the end of 2022, but the economic cost of the pandemic has been significant. Real gross domestic product growth was -4.3 percent in 2020, with at-the-border containment measures leading to delays in much-needed infrastructure projects. Growth is expected to accelerate as the lifting of COVID restrictions leads to the resumption of construction activity, shipping bottlenecks ease and the trade and hospitality sectors recover. Tuvalu is among the countries most vulnerable to the effects of climate change; its remote economy is dominated by the public sector; and its revenue base is narrow, with reliance on donor commitments further complicating fiscal planning. The economic setback due to the pandemic makes addressing these significant structural challenges more difficult. The report recommends promoting fiscal sustainability and building buffers by mobilizing revenues and rationalizing current expenditures.

Subject: Debt sustainability analysis, Environment, External debt, International organization, Monetary policy, Natural disasters, Public debt, Revenue administration

Keywords: Adaptation plan, Asia and Pacific, CPI expenditure weight, Debt sustainability analysis, Fund advice, Fund surveillance, Global, Natural disasters, Pacific Islands, Tuvalu's legal tender

Publication Details

Pages:

81
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2023/267
Stock No:

1TUVEA2023001
ISBN:

9798400250491
ISSN:

1934-7685

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