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English (3)


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2014 (3)

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Book
Republic of Palau : Selected Issues.
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ISBN: 1484371186 1475518080 1484371577 Year: 2014 Publisher: Washington, D.C. : International Monetary Fund,

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Abstract

This Selected Issues paper describes Palau’s fiscal challenges and policy options to achieve long-term fiscal sustainability. Palau relies heavily on compact grants, and without continued fiscal consolidation over the medium term, the fiscal position will become unsustainable after these grants expire in FY2024. The fiscal sustainability analysis uses an intertemporal budget constraint model to show that reducing the current deficit excluding grants by about 8 percentage points of GDP during FY2014–19 would ensure Palau’s long-term fiscal sustainability. The paper also discusses the role of tourism in Palau and identifies policy priorities to further promote this sector and sustain growth.


Book
Republic of Palau : Staff Report for the 2014 Article IV Consultation.
Author:
ISBN: 1484370805 1484370341 1484370813 Year: 2014 Publisher: Washington, D.C. : International Monetary Fund,

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Abstract

This 2014 Article IV Consultation highlights that after two years of strong expansion, growth is estimated at about zero percent in the fiscal year 2013 (FY2013, ending in September) in the Republic of Palau owing to declines in construction and tourism. Inflation moderated to 2¾ percent (annual average) in FY2013 thanks to stable international food and fuel prices, and it is expected to stay at about 3 percent in FY2014. Growth is projected to increase to 1¾ percent in FY2014 and to 2¼–2½ percent over the medium term driven by the recovery in tourism and infrastructure developments.

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