Kiribati: Asian Development Bank Member Fact Sheet 2017

Abstract

Driven by construction associated with large, donor-financed investments and by strong revenues from fishing licenses, Kiribati has enjoyed sustained economic growth over the past 6 years. The country’s economy is, however, highly vulnerable to external shocks and income volatility, due to its exposure to climate change, dependence on imports, and reliance on revenue from external sources. These sources include foreign aid and investment income from Kiribati’s sovereign wealth fund, the Revenue Equalization Reserve Fund. Private sector development is constrained by the size and scale of the economy, the high costs of doing business, and the country’s widely dispersed population. The Asian Development Bank (ADB) has been working with Kiribati since 1974, with loans and grants totalling $72.86 million, as well as technical assistance projects worth $22.02 million committed.