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International Monetary Fund. External Relations Dept.

04/78: “Empirical Modeling of Contagion: A Review of Methodologies,” Mardi Dungey, Renee Fry, Brenda Gonzalez-Hermosillo, and Vance Martin

International Monetary Fund

The Republic of Palau (Palau) has always been heavily dependent on external assistance. The availability of steady grants has allowed Palau to maintain a sizable public sector. A number of issues are considered in designing a comprehensive management strategy for the Compact Trust Fund (CTF). The following statistical data are also included in this paper: social indicators, financial position of compact trust fund, imports by product category, by country, or territory of origin, balance of payments, and so on.

International Monetary Fund

The key findings of the Republic of Palau’s 2010 Article IV Consultation shows that the single most important issue in Palau remains fiscal policy, including its effect on medium-term growth, as fiscal consolidation proceeds. The global financial crisis followed on the heels of a massive terms-of-trade shock, leading to a sharp curtailment of foreign direct investment and private credit. Tourism tumbled following an airline bankruptcy, and construction activity fell as major infrastructure projects reached completion.