Kiribati: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kiribati

IMF Staff Country Reports, May 10, 2024

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Canonical URL: Kiribati: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kiribati

The economy strengthened after the removal of all coronavirus disease 2019 restrictions in the second half of 2022.
Kiribati is among the most vulnerable countries to the effects of climate change.
Infrastructure gaps compound already challenging constraints imposed by distance and dispersion, limiting the development of the private sector in the state-dominated economy.
Reliance on imports is cemented, especially for essential commodities such as food and fuel.

IMF team recommended initiating an ambitious fiscal consolidation effort through scaling back recurrent spending and strengthening the fiscal policy framework.
It is imperative to implement structural reforms to:
- raise private sector employment and investment,
- enhance export competitiveness,
- close infrastructure and human capital gaps,
- expand financial access,
- better utilize natural resources,
- strengthen institutions and governance.
Continue capacity development to produce high-quality statistics in a timely manner to support data-driven policy formulation.

Subjects: Agroindustries, Debt sustainability analysis, Economic sectors, External debt, Government debt management, International organization, Monetary policy, Public debt, Public financial management (PFM)
Keywords: Agroindustries, Australia and New Zealand, Debt sustainability analysis, Global, Government debt management, IMF headquarters, Kiribati authorities, Kiribati's economy, money market rate, Pacific Islands, private sector employment