Bhutan: 2014 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Bhutan ePub (Adobe DRM) download by International Monetary Fund. Asia Dept

Bhutan: 2014 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Bhutan

INTERNATIONAL MONETARY FUND
Publication date: July 2014
ISBN: 9781498324533
Digital Book format: ePub (Adobe DRM)

Buy ePub

List price:
$9.00
Our price:
$6.99

You save: $2.01 (22%)
KEY ISSUES Outlook and Risks: Growth in Bhutan was robust during the last Five-Year Plan (2008/09 to 2012/13), driven by the development of the hydropower sector. However, growth has slowed recently due to policy efforts to moderate aggregate demand to ameliorate overheating pressures. Downside risks remain due to high public debt, potential financial sector vulnerabilities, and the need to manage recurrent pressures on Indian rupee reserves. The main external vulnerability stems from a prolongation of the slowdown in India, Bhutan’s main trade and development partner. Main Policy Recommendations: The main near-term policy challenge is to revive growth while ensuring that external pressures do not reemerge. The key policy recommendations are: • Fiscal policy should be tightened while preserving social and productive expenditure. Revenue reforms, including broadening the tax base by reducing the number of zero- sales tax-rated goods and taxing domestic value added more extensively, would help in the near term. Over the medium term, consideration should be given to introducing a value-added tax. • On monetary policy, external flows should be fully sterilized and liquidity should be tightened to prevent credit growth from rebounding too strongly. Interest rate spreads need to be narrowed and better reflect market conditions. Over the medium-term, there is a need to further improve the monetary transmission mechanism and deepen the financial system. In particular, it is essential to further develop the government bond market by greater and more regular issuance. • Reserves have to be managed carefully to contain recurrent pressures on rupee reserves, including by aligning the currency composition of reserves with that of the structure of external liabilities and trade. • Further financial deepening should be balanced with maintaining financial stability. Risks to stability necessitate continued vigilance, given past rapid private credit growth. Supervision and regulation need to be strengthened to monitor and safeguard banks’ asset quality and limit systemic risk, including by use of macroprudential measures.
Please sign in to review this product.
Devices:
Bhutan: 2014 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Bhutan ePub (Adobe DRM) can be read on any device that can open ePub (Adobe DRM) files.

File Size:
7117 Kb
Language:
ENG
Copy From Text:
Enabled. Limit of 20 selections within 20 days.
Printing:
Enabled. Limit of 20 pages within 20 days.
Other books by International Monetary Fund. Asia Dept
Philippines : Selected Issues ePub (Adobe DRM) download by International Monetary Fund. Asia Dept
Philippines : Selected Issues
International Monetary Fund. Asia Dept
INTERNATIONAL MONETARY FUND, August 2014
ISBN: 9781484364291
Format: ePub
List Price: $9.00 Our price: $6.99
Tonga : 2014 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Tonga ePub (Adobe DRM) download by International Monetary Fund. Asia Dept
Tonga : 2014 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Tonga
International Monetary Fund. Asia Dept
INTERNATIONAL MONETARY FUND, August 2014
ISBN: 9781498388870
Format: ePub
List Price: $9.00 Our price: $6.99
Philippines : 2014 Article IV Consultation-Staff Report; Press Release ePub (Adobe DRM) download by International Monetary Fund. Asia Dept
Philippines : 2014 Article IV Consultation-Staff Report; Press Release
International Monetary Fund. Asia Dept
INTERNATIONAL MONETARY FUND, August 2014
ISBN: 9781498353052
Format: ePub
List Price: $9.00 Our price: $6.99
Japan :  2014 Article IV Consultation-Staff Report; and Press Release ePub (Adobe DRM) download by International Monetary Fund. Asia Dept
Japan : 2014 Article IV Consultation-Staff Report; and Press Release
International Monetary Fund. Asia Dept
INTERNATIONAL MONETARY FUND, July 2014
ISBN: 9781498357302
Format: ePub
List Price: $9.00 Our price: $6.99