Front Matter Page
© 1995 International Monetary Fund
December 1995
IMF Staff Country Report No. 95/117
Kiribati—Recent Economic Developments
This report on recent economic developments in Kiribati was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. As such, the views expressed in this document are those of the staff team and do not necessarily reflect the views of the Government of Kiribati, or the Executive Board of the IMF.
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Front Matter Page
INTERNATIONAL MONETARY FUND
KIRIBATI
Recent Economic Developments
Prepared by Insu Kim, Eric Sidgwick, and Marie-Helene Duprat (all SEA)
Approved by the Southeast Asia and Pacific Department
October 16, 1995
Contents
Basic Data
I. Introduction and Summary
II. Output and Prices
A. Production
B. Development Planning and Foreign Investment
C. Prices
III. Public Finance
A. Fiscal Developments in 1993-94
1. Developments in 1993
2. Developments in 1994
B. Budget for 1995
C. Nonfinancial Public Enterprises
IV. Financial Sector
V. External Sector
A. Developments in Current and Capital Accounts
B. External Assets and Debt
C. Exchange and Trade System
1. Exchange arrangement
2. Imports and import payments
3. Payments for invisibles
4. Exports and export proceeds
5. Capital
Charts
1. Key Indicators for Production and Inflation, 1987-94
2. Central Government Budget, 1987-94
3. Financial Sector, 1987-94
4. External Developments, 1987-94
5. Real and Nominal Effective Exchange Rates, 1985-95
Text Tables
1. Gross Domestic Product by Economic Activity, 1990-94
2. Copra Production by Island, 1990-95
3. Prices Paid to Growers by the Kiribati Copra Cooperative Society, 1990-95
4. Fish Statistics, 1990-94
5. Tarawa Retail Price Index, 1990-95
6. Summary of Central Government Operations, 1990-95
7. Central Government Revenue, 1990-95
8. Central Government Expenditure (Economic Classification), 1990-95
9. Central Government Expenditure (Functional Classification), 1990-95
10. Central Government Salary Structure, 1989-95
11. Central Government Budgetary Subsidies to Public Enterprises, 1990-95
12. Commercial Bank Interest Rates, 1990-94
13. Commercial Bank Balance Sheet, 1990-94
14. Assets and Liabilities of the Development Bank of Kiribati, 1990-94
15. Assets and Liabilities of the Kiribati Provident Fund, 1990-94
16. Balance of Payments Summary, 1990-94
17. Composition of Exports, 1990-94
18. Direction of Trade, 1990-94
19. Composition of Imports, 1990-94
20. Services and Private Transfers, 1990-94
21. External Assets and Liabilities, 1990-94
Front Matter Page
Kiribati: Basic Data
GDP per capita (1993): US$488 (SA 717)
GNP per capita (1993): US$741 ($A 1,090)
Based on preliminary estimates of the implicit GDP deflator.
The fiscal year coincides with the calendar year (January-December).
Excludes reinvested interest income from the RERF.
Includes reinvested income from the RERF and STABEX transactions.
Figures refer to the Bank of Kiribati.
Excludes errors and omissions; for 1992, includes a counter-entry of SA 7 million for transfer of government funds overseas.
Excludes valuation changes.
On the basis of market value, including valuation changes.
Debt service as a percentage of exports of goods and services.
Kiribati: Basic Data
GDP per capita (1993): US$488 (SA 717)
GNP per capita (1993): US$741 ($A 1,090)
| 1990 | 1991 | 1992 | Prel. 1993 | Prel. 1994 | |||
|---|---|---|---|---|---|---|---|
| Output and prices | |||||||
| Nominal GDP (SA million) 1/ | 41.3 | 43.7 | 44.2 | 48.0 | 50.9 | ||
| Real GDP (percent change) | -2.9 | 2.8 | -1.6 | 1.0 | 1.7 | ||
| Consumer prices (percent change) | 3.8 | 5.7 | 4.0 | 6.1 | 5.1 | ||
| Terms of trade (percent change) | 7.2 | -21.2 | 9.6 | 0.5 | 26.2 | ||
| (In millions of Australian dollars) | |||||||
| Budget 2/ | |||||||
| Revenue | 23.1 | 28.1 | 33.1 | 32.5 | 32.7 | ||
| Tax | 92 | 10.3 | 10.2 | 11.7 | 11.7 | ||
| Nontax 3/ | 13.9 | 17.8 | 22.9 | 20.8 | 21.0 | ||
| External grants | 26.2 | 21.7 | 26.7 | 20.1 | 17.8 | ||
| Current expenditure | 22.1 | 24.8 | 25.8 | 26.5 | 30.9 | ||
| Development expenditure | 27.4 | 22.8 | 28.5 | 21.5 | 21.0 | ||
| Overall balance | -02 | 22 | 5.4 | 4.6 | -1.4 | ||
| Adjusted overall balance 4/ | 8.2 | 13.9 | 15.6 | 20.9 | 12.2 | ||
| Money and credit 5/ | |||||||
| Domestic credit (net) | 2.9 | 2.4 | 2.5 | 2.8 | 3.9 | ||
| Of which: Loans to private sector and public enterprises | (4.6) | (4.7) | (3.1) | (0 2) | (4.3) | ||
| Deposits | 26.1 | 28.6 | 30.0 | 28.2 | 29.1 | ||
| Balance of payments | |||||||
| Exports, f.o.b. | 5.6 | 3.7 | 6.5 | 4.6 | 7.4 | ||
| Imports, f.o.b. | 34.4 | 33.2 | 50.5 | 42.9 | 41.3 | ||
| Services, net | 10.1 | 16.0 | 16.6 | 19.7 | 22.2 | ||
| Private transfers, net | 4.3 | 5.7 | 7.7 | 8.6 | 9.1 | ||
| Official transfers | 29.2 | 25.2 | 29.6 | 22.6 | 20.3 | ||
| Current account balance | 14.7 | 17.4 | 9.9 | 12.7 | 17.7 | ||
| Capital account balance 6/ | -1.7 | -1.9 | 6.2 | -1.7 | 0.6 | ||
| Overall balance 7/ | 11.7 | 16.7 | 14.5 | 16.6 | 15.8 | ||
| Official external assets (end of period) 8/ | 250.8 | 296.1 | 323.2 | 385.9 | 357.7 | ||
| Revenue Equalization Reserve Fund | 220.4 | 261.0 | 284.5 | 346.0 | 316.0 | ||
| Government accounts | 2.5 | 5.3 | 8.8 | 14.1 | 14.1 | ||
| Bank of Kiribati | 27.9 | 29.8 | 29.9 | 25.8 | 27.6 | ||
| Memorandum items: | |||||||
| Current account (percent of GDP) | 35.5 | 39.7 | 22.4 | 26.5 | 34.8 | ||
| External debt (end of period) | 3.4 | 3.9 | 4.9 | 7.9 | 9.3 | ||
| Debt service (in percent) 9/ | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | ||
| USS per SA (period average) | 0.78 | 0.78 | 0.74 | 0.68 | 0.73 | ||
| SDR per SA (end of period) | 0.54 | 0.53 | 0.50 | 0.49 | 0.53 | ||
| Real effective exchange rate (1980 - 100; period average) | 71.2 | 72.8 | 69.4 | 68.2 | 71.1 | ||
Based on preliminary estimates of the implicit GDP deflator.
The fiscal year coincides with the calendar year (January-December).
Excludes reinvested interest income from the RERF.
Includes reinvested income from the RERF and STABEX transactions.
Figures refer to the Bank of Kiribati.
Excludes errors and omissions; for 1992, includes a counter-entry of SA 7 million for transfer of government funds overseas.
Excludes valuation changes.
On the basis of market value, including valuation changes.
Debt service as a percentage of exports of goods and services.
Kiribati: Basic Data
GDP per capita (1993): US$488 (SA 717)
GNP per capita (1993): US$741 ($A 1,090)
| 1990 | 1991 | 1992 | Prel. 1993 | Prel. 1994 | |||
|---|---|---|---|---|---|---|---|
| Output and prices | |||||||
| Nominal GDP (SA million) 1/ | 41.3 | 43.7 | 44.2 | 48.0 | 50.9 | ||
| Real GDP (percent change) | -2.9 | 2.8 | -1.6 | 1.0 | 1.7 | ||
| Consumer prices (percent change) | 3.8 | 5.7 | 4.0 | 6.1 | 5.1 | ||
| Terms of trade (percent change) | 7.2 | -21.2 | 9.6 | 0.5 | 26.2 | ||
| (In millions of Australian dollars) | |||||||
| Budget 2/ | |||||||
| Revenue | 23.1 | 28.1 | 33.1 | 32.5 | 32.7 | ||
| Tax | 92 | 10.3 | 10.2 | 11.7 | 11.7 | ||
| Nontax 3/ | 13.9 | 17.8 | 22.9 | 20.8 | 21.0 | ||
| External grants | 26.2 | 21.7 | 26.7 | 20.1 | 17.8 | ||
| Current expenditure | 22.1 | 24.8 | 25.8 | 26.5 | 30.9 | ||
| Development expenditure | 27.4 | 22.8 | 28.5 | 21.5 | 21.0 | ||
| Overall balance | -02 | 22 | 5.4 | 4.6 | -1.4 | ||
| Adjusted overall balance 4/ | 8.2 | 13.9 | 15.6 | 20.9 | 12.2 | ||
| Money and credit 5/ | |||||||
| Domestic credit (net) | 2.9 | 2.4 | 2.5 | 2.8 | 3.9 | ||
| Of which: Loans to private sector and public enterprises | (4.6) | (4.7) | (3.1) | (0 2) | (4.3) | ||
| Deposits | 26.1 | 28.6 | 30.0 | 28.2 | 29.1 | ||
| Balance of payments | |||||||
| Exports, f.o.b. | 5.6 | 3.7 | 6.5 | 4.6 | 7.4 | ||
| Imports, f.o.b. | 34.4 | 33.2 | 50.5 | 42.9 | 41.3 | ||
| Services, net | 10.1 | 16.0 | 16.6 | 19.7 | 22.2 | ||
| Private transfers, net | 4.3 | 5.7 | 7.7 | 8.6 | 9.1 | ||
| Official transfers | 29.2 | 25.2 | 29.6 | 22.6 | 20.3 | ||
| Current account balance | 14.7 | 17.4 | 9.9 | 12.7 | 17.7 | ||
| Capital account balance 6/ | -1.7 | -1.9 | 6.2 | -1.7 | 0.6 | ||
| Overall balance 7/ | 11.7 | 16.7 | 14.5 | 16.6 | 15.8 | ||
| Official external assets (end of period) 8/ | 250.8 | 296.1 | 323.2 | 385.9 | 357.7 | ||
| Revenue Equalization Reserve Fund | 220.4 | 261.0 | 284.5 | 346.0 | 316.0 | ||
| Government accounts | 2.5 | 5.3 | 8.8 | 14.1 | 14.1 | ||
| Bank of Kiribati | 27.9 | 29.8 | 29.9 | 25.8 | 27.6 | ||
| Memorandum items: | |||||||
| Current account (percent of GDP) | 35.5 | 39.7 | 22.4 | 26.5 | 34.8 | ||
| External debt (end of period) | 3.4 | 3.9 | 4.9 | 7.9 | 9.3 | ||
| Debt service (in percent) 9/ | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | ||
| USS per SA (period average) | 0.78 | 0.78 | 0.74 | 0.68 | 0.73 | ||
| SDR per SA (end of period) | 0.54 | 0.53 | 0.50 | 0.49 | 0.53 | ||
| Real effective exchange rate (1980 - 100; period average) | 71.2 | 72.8 | 69.4 | 68.2 | 71.1 | ||
Based on preliminary estimates of the implicit GDP deflator.
The fiscal year coincides with the calendar year (January-December).
Excludes reinvested interest income from the RERF.
Includes reinvested income from the RERF and STABEX transactions.
Figures refer to the Bank of Kiribati.
Excludes errors and omissions; for 1992, includes a counter-entry of SA 7 million for transfer of government funds overseas.
Excludes valuation changes.
On the basis of market value, including valuation changes.
Debt service as a percentage of exports of goods and services.