Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy

The paper updates the analysis of the fiscal policy response over the recent commodity cycle, contributes to the analysis of key drivers of fiscal policy procyclicality, and provides a stock-tacking of current fiscal vulnerabilities. Countercyclica...

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Main Authors:	Richaud, Christine, Galego Mendes Galego, Arthur, Ayivodji, Firmin, Matta, Samer, Essl, Sebastian
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	EMERGING MARKET ECONOMIES FISCAL POLICY CONTINGENT LIABILITY DEBT MANAGEMENT COMMODITY PRICES FISCAL TRENDS BUSINESS CYCLE VOLATILITY
Online Access:	http://documents.worldbank.org/curated/en/407611563518367752/Fiscal-Vulnerabilities-in-Commodity-Exporting-Countries-and-the-Role-of-Fiscal-Policy http://hdl.handle.net/10986/32180

id	okr-10986-32180
recordtype	oai_dc
spelling	okr-10986-321802021-05-25T09:26:33Z Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy Richaud, Christine Galego Mendes Galego, Arthur Ayivodji, Firmin Matta, Samer Essl, Sebastian EMERGING MARKET ECONOMIES FISCAL POLICY CONTINGENT LIABILITY DEBT MANAGEMENT COMMODITY PRICES FISCAL TRENDS BUSINESS CYCLE VOLATILITY The paper updates the analysis of the fiscal policy response over the recent commodity cycle, contributes to the analysis of key drivers of fiscal policy procyclicality, and provides a stock-tacking of current fiscal vulnerabilities. Countercyclical fiscal policy during good times has been a key factor affecting the ability of commodity exporters to sustainably support economic activity when prices started declining. Fiscal space to withstand the next shock has narrowed in many emerging and developing economies (EMDEs) and may also be constrained by contingent liabilities stemming from exposure of state-owned enterprises and public and systemic banks to the commodity-sector. Fiscal consolidation is still necessary in many commodity-exporting EMDEs to reduce debt risks, rebuild fiscal and external buffers, and facilitate access to affordable financing. Fiscal policy should particularly aim at reducing the high volatility of public investment spending in commodity-exporting countries, both in good and bad times. 2019-08-06T14:45:48Z 2019-08-06T14:45:48Z 2019-07 Working Paper http://documents.worldbank.org/curated/en/407611563518367752/Fiscal-Vulnerabilities-in-Commodity-Exporting-Countries-and-the-Role-of-Fiscal-Policy http://hdl.handle.net/10986/32180 English MTI Discussion Paper;No. 15 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	EMERGING MARKET ECONOMIES FISCAL POLICY CONTINGENT LIABILITY DEBT MANAGEMENT COMMODITY PRICES FISCAL TRENDS BUSINESS CYCLE VOLATILITY
spellingShingle	EMERGING MARKET ECONOMIES FISCAL POLICY CONTINGENT LIABILITY DEBT MANAGEMENT COMMODITY PRICES FISCAL TRENDS BUSINESS CYCLE VOLATILITY Richaud, Christine Galego Mendes Galego, Arthur Ayivodji, Firmin Matta, Samer Essl, Sebastian Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy
relation	MTI Discussion Paper;No. 15
description	The paper updates the analysis of the fiscal policy response over the recent commodity cycle, contributes to the analysis of key drivers of fiscal policy procyclicality, and provides a stock-tacking of current fiscal vulnerabilities. Countercyclical fiscal policy during good times has been a key factor affecting the ability of commodity exporters to sustainably support economic activity when prices started declining. Fiscal space to withstand the next shock has narrowed in many emerging and developing economies (EMDEs) and may also be constrained by contingent liabilities stemming from exposure of state-owned enterprises and public and systemic banks to the commodity-sector. Fiscal consolidation is still necessary in many commodity-exporting EMDEs to reduce debt risks, rebuild fiscal and external buffers, and facilitate access to affordable financing. Fiscal policy should particularly aim at reducing the high volatility of public investment spending in commodity-exporting countries, both in good and bad times.
format	Working Paper
author	Richaud, Christine Galego Mendes Galego, Arthur Ayivodji, Firmin Matta, Samer Essl, Sebastian
author_facet	Richaud, Christine Galego Mendes Galego, Arthur Ayivodji, Firmin Matta, Samer Essl, Sebastian
author_sort	Richaud, Christine
title	Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy
title_short	Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy
title_full	Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy
title_fullStr	Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy
title_full_unstemmed	Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy
title_sort	fiscal vulnerabilities in commodity exporting countries and the role of fiscal policy
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/407611563518367752/Fiscal-Vulnerabilities-in-Commodity-Exporting-Countries-and-the-Role-of-Fiscal-Policy http://hdl.handle.net/10986/32180
_version_	1764475971270868992

Fiscal Vulnerabilities in Commodity Exporting Countries and the Role of Fiscal Policy

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