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Diminishing Growth amid Global Uncertainty: Ramping up Investment in the Pacific (October 2024)

ľ¹ÏÓ°Ôº¡¯s October 2024 Pacific Economic Update provides an assessment of the economies of the Federated States of Micronesia (FSM), Fiji, Kiribati, Marshall Islands, Nauru, Palau, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu (Part 1) and highlights the potential of investment to create long-lasting, positive economic change in the region (Part 2). 

It is the first post-pandemic report to provide new data on investment trends and outlook for the Pacific.

As the pandemic recovery fades, growth in the Pacific is slowing. Weaker investment, natural disasters, and climate change are expected to keep holding back growth. This slowdown will make it harder for people in the region to improve their quality of life, with poverty likely to remain high compared to countries with similar incomes. The income gap with richer nations is also expected to widen. To address these issues, the Pacific will need to pursue strategies that drive investment.

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Press Release: Greater Investment Critical for the Pacific¡¯s Economic Future as Growth Slows ¨C World Bank

Back on track? The Imperative of Investing in Education (March 2024)

Growth in Pacific island countries decelerated in 2023 after a historically high growth rate of 9.1% in 2022, reflecting slowing economic activity in Fiji, which accounts for more than half of the region¡¯s output. Pacific island countries are expected to see slower growth in 2024 and 2025, as the boost from the pandemic recovery fades and fiscal policies gradually tighten. Despite the ongoing economic recovery, Pacific island countries still face formidable challenges. The March 2024 edition includes a special analysis on how investment in education can support long-term development and improve medium-term growth prospects.

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Press Release: Pacific Economic Growth Slowing After Post-Pandemic Rebound

Recovering in the Midst of Uncertainty (August 2023)

This August 2023 Pacific Economic Update describes a return to growth for the region, largely due to the resumption of tourism, higher public investment and construction. However, risks remain amid fragile global economic conditions. While global conditions have gradually improved progress on reducing inflation in major economies has proven to be more challenging than expected. The new Pacific Economic Update also includes a special analysis of international labour migration, which was an important income source for the region during the pandemic.

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Press Release: Pacific Recovery Picks Up Amid Uncertain Global Outlook

Pacific Economic Update, February 2023

The inaugural Pacific Economic Update provides a comprehensive analysis of 11 Pacific Island economies, and provides growth, inflation and debt forecasts for the coming year.  Pacific Island economies have been significantly affected by recent global events. The pandemic and associated border closures led to negative economic growth, while more recent spikes in commodity prices and a weakening global economy have limited international demand for Pacific exports. After nearly three years of economic contraction, Pacific economies can anticipate a return to growth this calendar year. While the recovery is expected to continue, fiscal balances, debt sustainability, and inflation will remain a concern. 

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Press Release: As growth returns to the Pacific, debt and inflation remain concerns