Pacific Finance Sector Briefs: Tuvalu

Abstract

One of the smallest Pacific countries, Tuvalu is a series of small, low-lying coral atoll and reef islands, with a population of just over 11,000 people. The country is isolated, vulnerable to adverse climatic events and economic shocks, and lacking in many of the resources needed for sustainable economic growth and poverty reduction. Government activity dominates the economy, with public expenditures projected to equal about 155% of gross domestic product in 2018 and 119% in 2019 (International Monetary Fund [IMF] 2018). The country relies heavily on its public sector as the main driver of economic growth, although the sector is generally inefficient and faces capacity constraints.