{
  "title": "IMF Staff Concludes Visit to Djibouti",
  "publication": "IMF News, June 17, 2022",
  "sourceUrl": "https://www.imf.org/en/news/articles/2022/06/17/pr22209-imf-staff-concludes-visit-to-djibouti",
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  "summary": "IMF Staff Concludes Visit to Djibouti",
  "publishDate": "2022-06-17",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Mission dates: June 12–16.\n- Press Release No. 22209.\n- Statement reflects preliminary findings of IMF staff and does not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.\n- Principal conclusion: Following a series of external shocks, the economic recovery in Djibouti appears uneven and urgent fiscal actions are needed to protect vulnerable households and restore debt sustainability."
    },
    {
      "heading": "Recent economic developments and outlook",
      "content": "- Growth rebounded from pandemic-related disruptions with growth of nearly 5 percent in 2021.\n- Port activity remains weak due to the conflict in Ethiopia and trade disruptions in China.\n- Reserves have fallen significantly over the past year.\n- Rising global commodity prices have:\n  - Added pressure on the balance of payments.\n  - Put upward pressure on inflation and adversely affected purchasing power.\n  - Increased pressure on the government budget.\n- Growth in 2022:\n  - Will depend on the resumption of port activity.\n  - Is tentatively forecast at 3½ percent."
    },
    {
      "heading": "Fiscal pressures, debt, and public finances",
      "content": "- Debt service is set to triple this year with the recent expiration of the G20 Debt Service Suspension Initiative (DSSI).\n- Debt service is set to triple this year to almost 5 percent of GDP.\n- Authorities have maintained fixed domestic fuel prices despite rising global prices.\n  - As a result, fiscal revenues are set to contract sharply.\n- Urgent need to create fiscal space for additional social spending, given rising prices and vulnerable households."
    },
    {
      "heading": "Policy recommendations and reforms advised by the mission",
      "content": "- Create fiscal space to support vulnerable households by:\n  - Targeting fuel subsidies.\n  - Strengthening cash transfer programs.\n- Urgently review additional measures to create fiscal space, including:\n  - Domestic revenue mobilization.\n  - Continued public financial management and governance reforms.\n- Objective of measures: allow further social spending and restore debt sustainability."
    },
    {
      "heading": "Mission closing remarks",
      "content": "- The mission team thanked the authorities for warm hospitality and productive discussions and looks forward to continuing close engagement.\n- Media contact: PRESS OFFICER: Wafa Amr; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson\n\nIMF Press Release No. 22209 — June 17, 2022.\n\n---\n\n\n References\n\n- People's Republic of China and the IMF\n- Djibouti and the IMF\n- The Federal Democratic Republic of Ethiopia and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/06/17/pr22209-imf-staff-concludes-visit-to-djibouti"
    }
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    "Published: June 17, 2022",
    "Mission dates: June 12–16.",
    "Press Release No. 22209.",
    "Statement reflects preliminary findings of IMF staff and does not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.",
    "Principal conclusion: Following a series of external shocks, the economic recovery in Djibouti appears uneven and urgent fiscal actions are needed to protect vulnerable households and restore debt sustainability.",
    "Growth rebounded from pandemic-related disruptions with growth of nearly 5 percent in 2021.",
    "Port activity remains weak due to the conflict in Ethiopia and trade disruptions in China.",
    "Reserves have fallen significantly over the past year.",
    "Rising global commodity prices have:",
    "Growth in 2022:",
    "Debt service is set to triple this year with the recent expiration of the G20 Debt Service Suspension Initiative (DSSI).",
    "Debt service is set to triple this year to almost 5 percent of GDP.",
    "Authorities have maintained fixed domestic fuel prices despite rising global prices.",
    "Urgent need to create fiscal space for additional social spending, given rising prices and vulnerable households.",
    "Create fiscal space to support vulnerable households by:",
    "Urgently review additional measures to create fiscal space, including:",
    "Objective of measures: allow further social spending and restore debt sustainability.",
    "The mission team thanked the authorities for warm hospitality and productive discussions and looks forward to continuing close engagement.",
    "Media contact: PRESS OFFICER: Wafa Amr; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson",
    "[People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)",
    "[Djibouti and the IMF](http://www.imf.org/external/country/DJI/index.htm)",
    "[The Federal Democratic Republic of Ethiopia and the IMF](http://www.imf.org/external/country/ETH/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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