Tuvalu’s recovery from the global financial crisis is slow, though inflation also remains subdued. With the government’s cash balances weak and likely to run out during 2011, gaining control over spending this year and holding the line in 2012, as well as continuing momentum with revenue reforms, will be crucial to securing donor support and moving the economy toward a more sustainable framework. Creating space for more private sector growth will require discipline in public enterprise management, retooling the financial sector to support private sector growth, and creating a transparent and level playing field across the economy.