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© 2010 International Monetary Fund

July 2010

IMF Country Report No. 10/214

Samoa: 2010 Article IV Consultation—Staff Report; Joint World Bank/IMF Debt Sustainability Analysis; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Samoa

Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. In the context of the 2010 Article IV consultation with Samoa, the following documents have been released and are included in this package:

  • The staff report for the 2010 Article IV consultation, prepared by a staff team of the IMF, following discussions that ended on March 6, 2010, with the officials of Samoa on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on April 22, 2010. The views expressed in the staff report are those of the staff team and do not necessarily reflect the views of the Executive Board of the IMF.

  • A staff supplement consisting of the joint World Bank/IMF debt sustainability analysis.

  • A Public Information Notice (PIN) summarizing the views of the Executive Board as expressed during its May 17, 2010 discussion of the staff report that concluded the Article IV consultation.

  • A statement by the Executive Director for Samoa.

The document listed below has been or will be separately released.

  • Selected Issues Paper

The policy of publication of staff reports and other documents allows for the deletion of market-sensitive information.

Copies of this report are available to the public from

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700 19th Street, N.W. ● Washington, D.C. 20431

Telephone: (202) 623-7430 ● Telefax: (202) 623-7201

E-mail: publications@imf.org Internet: http://www.imf.org

International Monetary Fund

Washington, D.C.

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INTERNATIONAL MONETARY FUND

SAMOA

Staff Report for the 2010 Article IV Consultation

Prepared by the Staff Representatives for the 2010 Consultation with Samoa

Approved by Ray Brooks and Aasim Husain

April 22, 2010

Context: Samoa has been subject to severe social and economic shocks. The September 2009 tsunami undercut prospects for a quick recovery from the global recession and saddled Samoa with massive private and public sector rebuilding costs. The Fund has played a catalytic role in securing donor support and provided emergency assistance under the ESF/RAC of SDR5.8 million (50 percent of quota).

Discussions: Apia, March 2–6, 2010 with Prime Minister Tuilaepa Malielegaoi, Ministry of Finance Chief Executive Iulai Lavea, Central Bank of Samoa Governor Papali’I Tommy Scanlan, and other senior officials and representatives from financial and business sectors as well as donors.

Team: Mr. Unteroberdoerster (head), Ms. Pongsaparn (all APD), Mr. Ralyea (FIN), and Mr. Mellor (AsDB). Mr. Pereira (OED) participated in the discussions.

Focus: Disaster rehabilitation and economic recovery; fiscal sustainability; private-sector led growth.

Exchange Rate: Samoa maintains a peg to a basket of currencies with undisclosed weights. Samoa has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system that is free of restrictions on payments and transfers for current international transactions.

Previous Fund Advice: Samoa has a good track record in maintaining fiscal sustainability and pursuing structural reform in line with Fund recommendations. The authorities remain committed to measures outlined in the staff report for the ESF/RAC request (IMF Country Report No. 10/46) that would underpin macroeconomic stability during tsunami-related reconstruction.

Statistical Issues: Core economic data are updated regularly and published on official websites. National accounts data are not prepared on an expenditure basis, while balance of payments data are limited and subject to frequent revisions.

Consultation Cycle: 24-month. The authorities would welcome an interim staff visit.

Contents

  • I. Staff Appraisal and Summary

  • II. Background: Weathering the Global Recession and 2009 Tsunami

  • III. Outlook and Risks

  • IV. Policy Discussions: Returning to Sustained Growth

    • A. Fiscal Management: From Rebuilding to Maintaining Sustainability

    • B. Monetary and Exchange Rate Policy: Managing a Sound Framework

    • C. Structural Reform: Promoting Private-Sector Led Growth

  • Boxes

  • I. Exchange Rate Assessment

  • II. Tapping the Economic Potential of Customary Land

  • III. State-Owned Enterprise Reform

  • Figures

  • 1. Samoa and Its Peers During the Global Recession

  • 2. Selected Exchange Rate and Financial Indicators

  • Tables

  • 1. Selected Economic and Financial Indicators, 2004/05–2010/11

  • 2. Illustrative Medium-Term Baseline Scenario, 2005/06–2013/14

  • 3. Balance of Payments, 2004/05–2010/11

  • 4. Financial Operations of the Central Government, 2005/06–2010/11

  • 5. Financial Soundness Indicators, 2004–09

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INTERNATIONAL MONETARY FUND AND

INTERNATIONAL DEVELOPMENT ASSOCIATION

SAMOA

SAMOA Joint IMF/World Bank Debt Sustainability Analysis 20101

Prepared by the staffs of the International Monetary Fund and the International Development Association

Approved by Ray Brooks and Aasim Husain (IMF) and Vikram Nehru and Sudarshan Gooptu (IDA)

April 22, 2010

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INTERNATIONAL MONETARY FUND

SAMOA

2010 Article IV Consultation–Informational Annex

Prepared by the Asia and Pacific Department

(In consultation with other departments)

April 22, 2010

Contents

  • I. Fund Relations

  • II. Relations with the World Bank Group

  • III. Relations with the Asian Development Bank

  • IV. Statistical Issues

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FOR IMMEDIATE RELEASE

July 12, 2010

International Monetary Fund

700 19th Street, NW

Washington, D. C. 20431 USA

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May 17, 2010

Samoa: 2010 Article IV Consultation: Staff Report; Joint World Bank/IMF Debt Sustainability Analysis; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Samoa
Author: International Monetary Fund