Tuvalu became the 187th member of the Fund in 2010 and this is the second Article IV consultation between Staff and the authorities since that time. The authorities found the frank, constructive discussions and the commitment of the mission team very helpful, and look forward to enduring engagements with the Fund and other International Financial Institutions.
The main challenges facing Tuvalu concern the development needs of the country while ensuring the sustainability of both its natural and donor-provided resources. Fund surveillance and technical assistance play a key role in maximizing the benefits from limited endowments, and also help to catalyze contribution to the country’s development goals by other International Financial Institutions (World Bank, Asian Development Bank) and the broader donor community.
With a population of only around 11,000 people and annual Gross National Income of just US$50 million, this small atoll group of islands is particularly vulnerable due to its geographic isolation, lack of fertile land, susceptibility to the impacts of climate change, and inability to reap economies of scale in the provision of public goods and services.