Republic of Nauru: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Alternate Executive Director for the Republic of Nauru

Author: International Monetary Fund. Asia and Pacific Dept

Volume/Issue: Volume 2025 Issue 275

Publication date: September 2025

ISBN: 9798229024518

$20.00

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Labor , Economics- Macroeconomics , Public Finance , Business and Economics - Statistics , External sector vulnerabilities , government budget balance , wages , climate resilience , anti-money laundering and combating the financing of terrorism (AML/CFT) , Anti-money laundering and combating the financing of terrorism (AML/CFT) , Wages , External sector statistics

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Summary

Constrained by structural challenges stemming from its remote location and small landmass, Nauru's economy has registered low and volatile growth and is heavily reliant on imports and foreign support, making it susceptible to external shocks, particularly in a global environment with heightened trade policy uncertainty. The growth outlook has improved, supported by the anticipated pickup of regional processing center (RPC) operations and sustained donor support. Risks to the growth outlook are tilted to the downside, driven by a global slowdown and potential decline in donor support induced by deepening geoeconomic fragmentation and policy uncertainty. Inflation is expected to moderate, though it could stay protractedly high owing to rising wage growth in the public sector.