Republic of Nauru: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Alternate Executive Director for the Republic of Nauru
September 22, 2025
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Constrained by structural challenges stemming from its remote location and
small landmass, Nauru's economy has registered low and volatile growth and is heavily
reliant on imports and foreign support, making it susceptible to external shocks,
particularly in a global environment with heightened trade policy uncertainty. The
growth outlook has improved, supported by the anticipated pickup of regional
processing center (RPC) operations and sustained donor support. Risks to the growth
outlook are tilted to the downside, driven by a global slowdown and potential decline
in donor support induced by deepening geoeconomic fragmentation and policy
uncertainty. Inflation is expected to moderate, though it could stay protractedly high
owing to rising wage growth in the public sector.
small landmass, Nauru's economy has registered low and volatile growth and is heavily
reliant on imports and foreign support, making it susceptible to external shocks,
particularly in a global environment with heightened trade policy uncertainty. The
growth outlook has improved, supported by the anticipated pickup of regional
processing center (RPC) operations and sustained donor support. Risks to the growth
outlook are tilted to the downside, driven by a global slowdown and potential decline
in donor support induced by deepening geoeconomic fragmentation and policy
uncertainty. Inflation is expected to moderate, though it could stay protractedly high
owing to rising wage growth in the public sector.
Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Economic and financial statistics, Economic growth, Expenditure, External debt, External sector statistics, National accounts, Public debt, Revenue administration, Wages
Keywords: anti-money laundering and combating the financing of terrorism (AML/CFT), budget bill, climate resilience, DAC list, External sector statistics, External sector vulnerabilities, Global, government budget balance, Nauru-Australia Treaty, Pacific Islands, staff appraisal, staff statement, wages
Pages:
81
Volume:
2025
DOI:
Issue:
275
Series:
Country Report No. 2025/275
Stock No:
1NRUEA2025001
ISBN:
9798229024518
ISSN:
1934-7685
