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IMF Country Report No. 14/111

REPUBLIC OF PALAU

SELECTED ISSUES

May 2014

This Selected Issues Paper on the Republic of Palau was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed on April 7, 2014.

Copies of this report are available to the public from

International Monetary Fund • Publication Services

PO Box 92780 • Washington, D.C. 20090

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International Monetary Fund

Washington, D.C.

©2014 International Monetary Fund

Front Matter Page

REPUBLIC OF PALAU

SELECTED ISSUES

April 7, 2014

Approved By Stephan Danninger

Prepared by Asia and Pacific Department

Contents

  • Achieving Long-term Fiscal Sustainability in Palau

  • A. Fiscal Challenges

  • B. Achieving Long-Term Fiscal Sustainability

  • C. Policy Implications

  • BOXES

  • 1. The Compact of Free Association

  • 2. Comprehensive Tax Reform—Technical Assistance Recommendations

  • FIGURE

  • 1. Long-Term Fiscal Sustainability, FY2010–40

  • TABLE

  • 1. Tax Revenue in Pacific Islands Countries

  • APPENDIX

  • 1. The Intertemporal Budget Constraint

  • REFERENCES

  • PROMOTING TOURISM AND GROWTH IN PALAU

  • A. The Patterns of Tourism

  • B. The Economic Role of Tourism

  • C. Promoting Tourism and Private Sector Development to Sustain Growth

  • BOX

  • 1. Estimating the Impact of Tourism on Income

  • FIGURE

  • 1. Palau and Pacific Islands Comparators

  • TABLE

  • 1. Tourism-Related Challenges and Policy Priorities

  • REFERENCES

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Republic of Palau: Selected Issues
Author:
International Monetary Fund. Asia and Pacific Dept