SUVA, October 15, 2024 ¡ª ľ¹ÏÓ°Ôº today launched its latest Pacific Economic Update, calling for a major boost in investment to address the region's slowing economic growth. The report, Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific, underscores the urgent need for targeted investment to create jobs, improve infrastructure, and build resilience against climate change amid global uncertainty. These actions are crucial for improving the livelihoods of Pacific communities and narrowing the income gap with higher-income nations.
The report highlights that growth across the Pacific has fallen to 3.6 percent in 2024, down from 5.8 percent in 2023 as the post-pandemic rebound fades. Growth is settling into a slower pace, signaling a weaker outlook compared to past performance. This slowdown is attributed to weaker investment, increasing climate risks, and structural challenges, all amid continuing global uncertainty that continues to hold back progress. The report emphasizes that without immediate action to ramp up investment, Pacific nations may struggle to reduce poverty or generate new economic opportunities for the region¡¯s people.
"The Pacific faces mounting challenges, but there is also an opportunity for transformation," said Stephen N. Ndegwa, World Bank Country Director for the Pacific and PNG. "By prioritizing investments in key sectors and increasing efficiency, Pacific countries can unlock economic growth that directly benefits local communities, creates jobs, and strengthens resilience to the impacts of climate change."
The Pacific Economic Update offers six key recommendations to drive investment and ensure local communities benefit from economic growth. These include greater investment in high-potential sectors like agriculture, sustainable tourism, and the blue economy, which can create jobs and support rural livelihoods. Improving infrastructure¡ªsuch as roads, ports, and energy systems¡ªwill boost connectivity, enabling businesses to expand and creating more job opportunities.
Building fiscal and climate resilience is also critical. Investing in climate-resilient infrastructure, improving disaster preparedness, and building up financial reserves will protect communities from future shocks and ensure stability. Attracting private investment will require regulatory reforms to make it easier for businesses to operate, which will promote growth in key sectors and foster local development.
Finally, enhancing access to finance, particularly for small businesses, will be essential for promoting sustainability and driving long-term growth. The report stresses the need to leverage international financial support to drive high-impact projects that directly benefit Pacific communities.
The Economic Update highlights that with the right policies boosting investment, Pacific nations can overcome current economic challenges, build a more resilient future, and create tangible benefits for communities, businesses, and governments across the region.
