UID:
edoccha_9958068559002883
Format:
1 online resource (54 pages)
ISBN:
1-5135-0041-4
,
1-5135-4241-9
,
1-5135-6061-1
Series Statement:
IMF Staff Country Reports
Content:
KEY ISSUES Context. Donor-financed large infrastructure projects, increased public spending, and a pick-up in credit to households have boosted real GDP growth to close to 4 percent in 2014 and to about 3 percent in 2015. Inflation remains low, underpinned by lower food and commodity prices. Steps are being taken to reduce the many hurdles to private growth that Kiribati faces, among which are high transportation and communication costs and an increasing impact of climate change. Fiscal policy. The fiscal outlook has improved, but further efforts are needed to ensure sustainability. The recurrent balance was in large surplus in 2014 and is expected to remain positive in 2015, reflecting high revenue from license fees, and notwithstanding a large increase in expenditures. But under the historic pace of spending the sovereign wealth fund (Revenue Equalization Reserve Fund—RERF) would be depleted in about 20 years. Ensuring sustainability requires containing nominal expenditure growth to around 1½ per annum over the next five years (after accommodating climate-change-related costs), with transparent and symmetric transfers and withdrawals from the RERF around this path. Structural reforms. There is a consensus among donors that significant progress has been achieved. The State-Owned Enterprise (SOE) Reform Act is being implemented in a satisfactory way, as illustrated by the recent successful privatization of the telecommunication company. Key outstanding issues include further reforming the energy and copra sectors and improving the investment climate.
Note:
Cover -- CONTENTS -- BACKGROUND -- RECENT DEVELOPMENTS AND OUTLOOK -- RESTORING SUSTAINABILITY AND IMPROVING RESILIENCE TO SHOCKS -- PROMOTING GROWTH AND REDUCING POVERTY -- A. Removing Barriers to Private Sector Growth -- B. Implementing SOE Reforms -- C. Fostering Financial Deepening -- D. Improving Social Outcomes -- STAFF APPRAISAL -- BOXES -- 1. External Competiveness and Exchange Rate Assessment -- 2. The Key Challenge of Adapting to Climate Change -- 3. Managing Volatility of Fishing License Fees and Ensuring Fiscal Sustainability -- 4. Growth and Investment Climate -- 5. Improving the Efficiency of State-Owned Enterprises -- FIGURES -- 1. The Setting in a Cross-Country Context -- 2. Macroeconomic Prospects -- 3. Health, Education Expenditure, and Selected Human Development Indicators -- TABLES -- 1. Selected Economic Indicators, 2009-17 -- 2. Summary of Central Government Operations, 2009-20 -- 3. Medium-Term Projections, 2009-20 -- 4. Outstanding Banking Loans, 2007-14 -- 5. Balance of Payments, 2009-20 -- ANNEX -- 1. Risk Assessment Matrix -- CONTENTS -- FUND RELATIONS -- RELATIONS WITH THE PACIFIC FINANCIAL TECHNICAL ASSISTANCE CENTRE -- BANK-FUND COLLABORATION -- A. World Bank-IMF Collaboration -- B. Relations with the World Bank Group -- RELATIONS WITH THE ASIAN DEVELOPMENT BANK -- STATISTICAL ISSUES.
Additional Edition:
ISBN 1-5135-2680-4
Language:
English
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