Kiribati: Asian Development Bank Member Fact Sheet 2018

Abstract

Driven by construction associated with large, donor-financed investments and by strong revenues from fishing licenses, Kiribati has enjoyed sustained economic growth in recent years. The country’s economy is, however, highly vulnerable to external shocks and income volatility. It is highly exposed to extreme weather events and the impacts of climate change, and is dependent on imports and nontax revenues. Sources of external revenue 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.