Format:
Online-Ressource (54 p)
Edition:
Online-Ausg.
ISBN:
1513540319
,
9781513540313
Series Statement:
IMF Staff Country Reports: Country Report No. 15 / 259
Content:
Economic outlook: St. Vincent and the Grenadines’ economic recovery from the global economic crisis has been curbed by a series of significant natural disasters, while rehabilitation and reconstruction costs have pushed current account and fiscal deficits higher. After an estimated 1.1 percent growth rate in 2014, growth is projected to pick up modestly to 2.1 percent in 2015 on a pickup in tourism, agriculture and enhanced implementation of much-needed rehabilitation and reconstruction projects. Risks to short term growth are to the downside due to uncertainty about the authorities’ capacity to implement fully the needed development projects. In the medium term, growth has upside potential as the completion of the new international airport may have a larger-than-projected impact on tourism, with significantly larger than average natural disasters a downside risk. Policy Challenges: A stronger medium-term fiscal consolidation effort will be critical to build much needed fiscal space, not least in case of future natural disasters. Measures to ensure fiscal sustainability include improving the efficiency of revenue collection, eliminating domestic arrears, and reducing current spending as a share of GDP. Structural reforms, to ease the costs of doing business and increase agricultural productivity, are critical to improving competitiveness and ensuring medium-term growth and current account sustainability. Improving resilience to adverse weather events will help reduce tail risks to growth and fiscal sustainability. Policy response to past advice: The authorities have made some progress in implementing policies previously outlined. Tax compliance has improved significantly and an arrears monitoring and management system has been developed. Progress has been limited on rationalizing tax exemptions and limiting transfers to state-owned enterprises
Additional Edition:
Erscheint auch als Druck-Ausgabe St. Vincent and the Grenadines: 2014 Article IV Consultation-Staff Report Washington, D.C. : International Monetary Fund, 2015 ISBN 9781513540313
Language:
English
DOI:
10.5089/9781513540313.002
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