Like other countries in the Pacific region, the global economic crisis has had a profound effect on Tuvalu, causing growth to slow significantly. The government is making efforts to curb spending, contain the deficit, and build its budget reserves to help smooth volatile revenue flows and provide a fiscal buffer in the event of shocks.

ADB's operational strategy complements the National Strategy for Sustainable Development by focusing on improving governance and economic management, in particular, public financial management and public enterprise reforms.