Nicaragua: Joint Staff Assessment of the Poverty Reduction Strategy Paper Second Progress Report
IMF Staff Country Reports, January 28, 2004
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Bibliographic details
- Published: January 28, 2004
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451829204.002
Macroeconomic policy assessment
- The current government has succeeded in reorienting economic policies after a series of shocks and an initial weak policy response.
- The medium-term macroeconomic framework centers on sustained prudent fiscal and monetary policies.
- The pursuit of fiscal discipline to restore macroeconomic stability has dominated the second year of strategy implementation.
Growth targets and feasibility
- Revised real GDP growth targets are feasible with sustained prudent macroeconomic policies and institutional reforms.
Financial system and PRSP content
- The Poverty Reduction Strategy Paper (PRSP) could include a more detailed description of the actions being implemented to strengthen the financial system.
Implementation and priorities
- Fiscal discipline to restore macroeconomic stability is the dominant focus in the second year of PRSP implementation.
- Institutional reforms are identified as necessary complements to prudent macroeconomic policies to achieve growth objectives.