IMF Staff Country Reports

Tuvalu: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tuvalu

Publication Date:

July 21, 2023

Electronic Access:

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Summary:

A successful vaccination strategy allowed Tuvalu to lift COVID containment measures with limited negative health consequences. However, the economic fallout from the pandemic has been significant as containment measures led to delays in much-needed climate adaptation projects and an increase in current spending has eroded fiscal sustainability. Growth stagnated following the initial contraction at the onset of the pandemic, and global inflationary pressures and climate events have led to soaring inflation and exposed food and water security risks. Tuvalu is among the countries most vulnerable to the effects of climate change; its remote economy is dominated by the public sector; and its revenue base is narrow, with reliance on donor commitments further complicating fiscal planning. The economic setback due to the pandemic makes addressing these significant structural challenges more difficult.

Series:

Country Report No. 2023/267

Subject:

International organization Monetary policy

Frequency:

regular