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Slow growth expected

NAURU’S economic growth is expected to slow down this year with the country heavily reliant on revenue derived from finite and uncertain sources. The country is largely dependent on revenue from the Australian Regional Processing Centre (RPC) for asylum seekers. The centre generates an estimated A$18 million (US$13m)in annual visa fees, while the value of Australia’s in-kind contributions toward the RPC operations are reportedly larger.

It’s widely speculated that the economic benefits from the processing centre peaked in 2015. The Asian Development Bank (ADB) predicts, however, that for 2016 in addition to revenue from the processing centre, the Nauruan economy will be buoyed somewhat by larger increases in public spending, and higher consumer spending as households benefit from government debt repayments and the liquidation of the Nauru Phosphate Royalties Trust.

This will be supplemented by continued progress in budget implementation, coupled with an expected recovery in phosphate exports. Nauru’s 2016 budget targets continued fiscal expansion with a supplemental budget passed last October increasing revenue to US$86 million with a matching increase in planned expenditures. The reliance, however, on revenue from foreign fishing licenses, may well be the pivotal point for economic growth as, with many Pacific economies, income from such licences can…. Best place to buy Cenforce USA, UK, AU.

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