Samoa: 2024 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, January 31, 2025
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- Samoa: 2024 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: January 31, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229000505.002
Economic overview
- Samoa’s economic recovery has been remarkable.
- An expansionary fiscal stance will support the economy.
- Overcoming capacity constraints to execute much needed public investment, including climate-related projects, is a near-term focus.
Fiscal policy and public investment
- Expansionary fiscal stance to support economic activity.
- Fiscal reforms can improve the effectiveness of policy and mitigate risks.
- Near-term priority: overcome capacity constraints to execute public investment, including climate-related projects.
Monetary policy
- Monetary policy normalization should continue.
- Aim of monetary policy: guide interest rates higher.
Financial sector and banking system
- Financial sector risks have declined relative to the pandemic but require continued monitoring.
- Priorities for the banking system:
- Operationalizing the emergency liquidity assistance framework.
- Enhancing prudential standards.
Exchange rate regime
- The exchange rate peg remains the appropriate nominal anchor.
Structural challenges and medium-term growth
- Significant structural challenges impede medium-term growth potential and will require concerted reform efforts.
- Key reform priorities:
- Attracting foreign investment.
- Reducing trade facilitation costs.
- Mitigating the impact of the pickup in the seasonal workers program, including by enhancing human capital and raising labor force participation rates.
Source: Samoa: 2024 Article IV Consultation-Press Release; and Staff Report — January 31, 2025.