Samoa outpaces comparators but needs to consolidate gains to boost growth prospects
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Samoa has become one of the best-managed economies in the Pacific Island region over the past decade, the IMF said in its recent economic review. The economy registered solid growth, low inflation, and improved public finances and international reserve levels, and outperformed comparator countries within and outside the region. Samoa also made progress toward achieving the Millennium Development Goals.
Political stability, close consultation with stakeholders, and extensive efforts to foster a broad consensus for reform have been integral to the country's success. Nevertheless, economic performance weakened in recent years, the export base continues to be narrow, and the economy remains vulnerable to external shocks. Substantial reforms are needed to consolidate gains and boost Samoa's long-term growth prospects.
The IMF's Executive Board commended the authorities for their good macroeconomic management and continued efforts to reform the civil service, liberalize the telecommunications sector, and strengthen banking supervision and its framework for anti-money laundering and combating the financing of terrorism.
Also welcomed was the recent pickup in growth and the decline in inflation following a significant increase...
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