1. Nauru’s size and location pose challenges for economic growth and development. Nauru is a remote island nation in the Pacific, with a land area of about 21 square kilometers and a population of approximately 12,000 people in 2021. Its size and remoteness constrain potential growth and raise its reliance on food and fuel imports. The revenue base—comprising sales of fishing licenses, residual phosphate mining and, since FY2012, revenues associated with the Australian Regional Processing Center (RPC) for asylum seekers—is narrow and volatile. Due to land degradation from phosphate mining in the 1980s, the population mainly resides along the narrow coastal land, raising vulnerability to climate change. Nauru’s population also has a high incidence of non-communicable disease (NCDs).
Our authorities in Nauru appreciate the open and constructive engagement with the mission team during the virtual 2021 Article IV consultations. Nauru is one of the Fund’s newest, smallest, and most vulnerable members, with severely limited capacity for economic diversification. The authorities attach significant value to the policy advice and assistance received through their Fund membership. The authorities also broadly concur with staff’s assessment, analysis, and most policy recommendations.
2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Nauru
2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Nauru
2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Nauru