{
  "title": "Fiscal Sustainability in Remittance-Dependent Economies",
  "publication": "IMF Working Papers, September 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-sustainability-in-remittance-dependent-economies-23253",
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  "summary": "We investigate the impact of remittances on public debt sustainability and detail how the traditional debt-to-GDP ratio can be modified to create a more accurate representation of debt sustainability for a country that receives significant remittance inflows.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Investigates the impact of remittances on public debt sustainability.\n- Details how the traditional debt-to-GDP ratio can be modified to better represent debt sustainability for countries with significant remittance inflows.\n- Main result: inclusion of remittances into the traditional debt sustainability analysis alters the amount of fiscal adjustment required to place debt on a sustainable path.\n- Conclusion: While preliminary, results indicate a one-size-fits-all stability analysis may be inappropriate when evaluating fiscal policy stance for countries with different balance of payments characteristics."
    },
    {
      "heading": "Key findings and analytical points",
      "content": "- Inclusion of remittances in debt sustainability analysis changes the required fiscal adjustment to achieve a sustainable debt path.\n- The traditional debt-to-GDP ratio can be modified to incorporate remittance inflows to reflect more accurately the sustainability position of remittance-dependent economies.\n- Results are preliminary and intended to illustrate how balance of payments characteristics affect fiscal stability assessments."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Fiscal stability analyses should be tailored to country-specific external and balance of payments characteristics, particularly remittance dependence.\n- Policymakers in remittance-dependent economies should consider adjusted debt metrics that incorporate remittance inflows when designing fiscal consolidation strategies."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Authors: Ralph Chami, Yasser Abdih, Amine Mati, Michael T. Gapen\n- Publication date: September 1, 2009\n- Series: Working Paper No. 2009/190\n- Issue: 190\n- Volume: 2009\n- Pages: 25\n- DOI: https://doi.org/10.5089/9781451873375.001\n- Stock No: WPIEA2009190\n- ISBN: 9781451873375\n- ISSN: 1018-5941\n- Subject: Debt sustainability, Fiscal consolidation, Public debt, Real interest rates, Remittances\n- Keywords: debt-to-GDP, debt-to-GDP ratio, GDP, remittance, WP\n\nFiscal Sustainability in Remittance-Dependent Economies, IMF Working Paper No. 2009/190.\n\n---\n\n Content in this bundle\n\n- Wp09190\n  - Wp09190 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp09190 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-sustainability-in-remittance-dependent-economies-23253"
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    "Authors: Ralph Chami, Yasser Abdih, Amine Mati, Michael T. Gapen",
    "Published: September 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451873375.001",
    "Investigates the impact of remittances on public debt sustainability.",
    "Details how the traditional debt-to-GDP ratio can be modified to better represent debt sustainability for countries with significant remittance inflows.",
    "Main result: inclusion of remittances into the traditional debt sustainability analysis alters the amount of fiscal adjustment required to place debt on a sustainable path.",
    "Conclusion: While preliminary, results indicate a one-size-fits-all stability analysis may be inappropriate when evaluating fiscal policy stance for countries with different balance of payments characteristics.",
    "Inclusion of remittances in debt sustainability analysis changes the required fiscal adjustment to achieve a sustainable debt path.",
    "The traditional debt-to-GDP ratio can be modified to incorporate remittance inflows to reflect more accurately the sustainability position of remittance-dependent economies.",
    "Results are preliminary and intended to illustrate how balance of payments characteristics affect fiscal stability assessments.",
    "Fiscal stability analyses should be tailored to country-specific external and balance of payments characteristics, particularly remittance dependence.",
    "Policymakers in remittance-dependent economies should consider adjusted debt metrics that incorporate remittance inflows when designing fiscal consolidation strategies.",
    "Authors: Ralph Chami, Yasser Abdih, Amine Mati, Michael T. Gapen",
    "Publication date: September 1, 2009",
    "Series: Working Paper No. 2009/190",
    "Issue: 190",
    "Volume: 2009",
    "Pages: 25",
    "DOI: https://doi.org/10.5089/9781451873375.001",
    "Stock No: WPIEA2009190",
    "ISBN: 9781451873375",
    "ISSN: 1018-5941",
    "Subject: Debt sustainability, Fiscal consolidation, Public debt, Real interest rates, Remittances",
    "Keywords: debt-to-GDP, debt-to-GDP ratio, GDP, remittance, WP",
    "**Wp09190**"
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