Cover IMF Staff Country Reports
Kingdom of the Netherlands - Aruba: 2019 Article IV Consultation Discussions-Press Release and Staff Report
Author:
International Monetary Fund. Western Hemisphere Dept.
Search for other papers by International Monetary Fund. Western Hemisphere Dept. in
Current site
Google Scholar
PubMedClose
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2019: Issue 148
Language:
English
Publication Date:
05 Jun 2019
DOI:
https://doi.org/10.5089/9781498318006.002
ISBN:
9781498318006
ISSN:
1934-7685
Pages:
69
Keywords:
ISCR; CR; Aruba; GDP; article IV consultation discussion; discussion; Last Article IV consultation discussion; government finance statistics; central bank; IMF staff estimate; money market rate; Tourism; Fiscal consolidation; Caribbean
Download PDF (7.5 MB) Download Epub
This 2019 Article IV Consultation highlights that Aruba’s economic recovery continues, although at a slowing pace. The authorities have managed well the impact of the crisis in Venezuela through diversification of product markets and tourism sources. Nonetheless, a deepening of the crisis is a downside risk—mainly through a potentially sizable influx of immigrants and refugees. It is recommended to identify additional reform measures to achieve Aruba’s fiscal targets. These measures should involve a mix of revenue increases and expenditure restraint, and be prioritized, sequenced, equitable, and well-communicated to minimize implementation risks and ensure the measures’ durability. The government devised a reform agenda with fiscal consolidation as a key pillar. Additional measures are needed to achieve the authorities’ fiscal targets. The additional adjustment should contain a mix of tax reforms and expenditure rationalization. The fiscal measures in 2019 are expected to deliver a large upfront increase in revenues but it will be important to strike a balance between revenue increases and expenditure restraint in subsequent years.
  • Collapse
  • Expand
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund
Volume 2019: Issue 148