The World Bank has released its latest Pacific Economic Update, emphasizing the need for significant investment to combat the region’s declining economic growth.
The report, titled Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific, stresses the urgent necessity for focused investments aimed at job creation, infrastructure enhancement, and building resilience against climate change amid global uncertainties.
Such measures are essential for improving the living conditions of Pacific communities and bridging the income disparity with higher-income countries.
The report notes that economic growth in the Pacific is projected to decrease to 3.6 percent in 2024, down from 5.8 percent in 2023, largely as the effects of the post-pandemic recovery diminish.
The ongoing slowdown signals a less optimistic outlook compared to previous years.
Contributing factors include reduced investment, heightened climate risks, and inherent structural challenges, all exacerbated by persistent global uncertainties that hinder advancement.
The report warns that, without prompt action to increase investment, Pacific nations may find it difficult to alleviate poverty or generate new economic opportunities for their populations.
The Pacific Economic Update outlines six key recommendations to stimulate investment and ensure that local communities reap the benefits of economic growth.
Recommendations include increased investment in high-potential sectors such as agriculture, sustainable tourism, and the blue economy, which have the potential to create jobs and bolster rural livelihoods.