Publication: Tuvalu: Joint Bank-Fund Debt Sustainability Analysis, 2018
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2018-10-01
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2018-11-28
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The DSA concludes that Tuvalu remains at a high risk of debt distress, in line with the 2016 DSA conclusion. External debt has breached several thresholds as of 2017, including for the present value of debt-to-GDP. Risks to debt sustainability remain high due to elevated current spending, a projected decline in fishing revenue and grants, and risks of natural disasters. A persistent fiscal deficit is projected to deplete fiscal buffers and cause the present value of debt-to-GDP to breach its indicative threshold in the long run. This underscores the importance of containing the fiscal deficit and maintaining buffers.
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“International Development Association; International Monetary Fund. 2018. Tuvalu: Joint Bank-Fund Debt Sustainability Analysis, 2018. © World Bank. http://hdl.handle.net/10986/30908 License: CC BY 3.0 IGO.”
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