Kiribati’s Economy to Rebound with Border Openings in September
As the COVID-19 pandemic continues to affect global economies, Kiribati is poised to resume its economic activity once borders reopen. The country has been under lockdown since March, causing a significant disruption to its economy.
Economic Recovery
In a recent budget update, the Ministry of Finance and Economic Development highlighted the importance of border openings in driving economic recovery. According to two possible scenarios, if borders reopen by September 2020, Kiribati’s economy is expected to experience a moderate rebound.
Budget Update
The ministry has revised its budgets for the remainder of the fiscal year, taking into account actual expenditure patterns and forecasts up to May 2020. The budget consultation process with each ministry aims to promote transparent and prudent financial management.
Reporting Enhancements
Several enhancements have been made to the budget report, including:
- Simplified debt tables
- Reporting of special funds balances
- Audited financials for State-Owned Enterprises (SOEs)
- Transparency on sources and uses of public funds
Fiscal Framework Summary 2019-2020
The table below provides a summary of Kiribati’s fiscal framework for the past year:
| Category | 2018 Actual | 2019 Budget | 2019 Revised | 2020 Budget |
|---|---|---|---|---|
| Total Government Revenue | $234,382,315 | $189,768,327 | $284,758,222 | $209,273,942 |
| Departmental Expenditures | $110,929,921 | $119,467,814 | $120,455,822 | $120,044,225 |
Outlook
Kiribati’s economy is expected to experience a moderate rebound once borders reopen. The country’s fiscal framework will play a crucial role in driving economic recovery. With the budget consultation process and reporting enhancements, the government aims to promote transparent and prudent financial management.
As we approach September 2020, Kiribati is poised to resume its economic activity, providing a much-needed boost to the economy. The country’s resilience and determination to bounce back from this pandemic will be crucial in driving growth and development in the years to come.