Tuvalu is a small island developing state comprising nine atolls in the South Pacific, geographically isolated and highly vulnerable to climatic and economic shocks. With a small private sector and limited resources to support socioeconomic development, the public sector is its main driver of growth. Tuvalu depends on fishing license fees, trust fund investments, official development assistance, and remittances for foreign currency earnings. Disasters triggered by natural hazards, such as cyclones and king tides, increase the country’s economic volatility and can substantially alter fiscal outcomes.
To help the Tuvalu overcome the impacts of the COVID-19 pandemic, ADB’s assistance will focus on improving outer-island port facilities, building disaster resilience, promoting renewable energy sources, and sustaining good fiscal management.