Kiribati is a small and fragile state vulnerable to climate change. Record high fishing revenue in recent years has boosted growth, improved the current account, and strengthened the fiscal stance. However, fishing revenue is projected to decline as the impact of favorable weather conditions wears off. Long-run spending pressure is substantial due to the country’s large infrastructure gap and significant climate change adaptation cost. The government’s development strategy, the Kiribati 20-Year Vision (KV20), identifies fisheries and tourism as the two strategically important sectors to achieve inclusive and sustained long-run growth.
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