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

International Monetary Fund

No 2023/376, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2023 Article IV Consultation discusses that Nauru faces structural challenges due to its small size and remoteness, and is highly dependent on imports. The narrow revenue base comprises fishing license fees, residual phosphate processing, and revenue from the Regional Processing Center (RPC). Nauru is vulnerable to the negative effects of climate change, as the population inhabit in a narrow coastal area. The health and economic impact of the pandemic has been limited in Nauru, thanks to successful vaccination and containment strategies. Growth is expected to moderate over the medium term due to the planned scale-down of the RPC. Risks to the outlook are tilted to the downside, stemming from continued pressure on financial services, delayed fiscal and structural reforms, and the uncertain future of the RPC. Nauru remains vulnerable to external shocks such as a rise in commodity prices, a sharp global slowdown, and climate change. Structural policies should improve human capital, climate resilience, diversification, and governance. Education spending should prioritize improving enrolment and attendance rates.

Keywords: staff appraisal; joint statement; IMF staff representative; Nauru agency; NA statistics; External sector statistics; Global; Australia and New Zealand; Pacific Islands (search for similar items in EconPapers)
Pages: 84
Date: 2023-11-28
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