1. Prior to the pandemic, the authorities had made great strides with strengthening fundamentals. The authorities had implemented policies in line with past Fund advice (Annex I). Significant efforts were made to diversify the export base, strengthen human capital, improve the investment climate, and build climate resilience, benefiting from the relatively sound governance compared with peer averages. A new airport opened in 2017 improved tourism prospects and further plans for upgrading essential economic infrastructure were instituted, including the port modernization project and the new hospital, both with climate resilient features and financed by concessional loans (Annex II).