The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
Kiribati's economic policies reflect the country's communally oriented values that favor social cohesion over individual self-reliance and the rough and tumble of the market economy. Unfavorable external conditions, fiscal slippages, and the lack of structural reforms have led to a weakening in Kiribati's external and fiscal positions. To achieve sustainable medium-term growth, timely implementation of fiscal consolidation and structural reforms is critical. Public enterprise reform and privatization, along with civil service rationalization, should be at the top of the reform agenda.