The export industry of the Pacific island region has seen a dramatic recovery, showing a 49 percent increase in revenue in 2023, which is double the growth rate witnessed in 2022, according to the 2024 Pacific Islands Export Survey report. The Pacific Trade Invest Network’s report also revealed that Pacific exporters are significantly expanding their reach to both international and local markets, with a 64 percent increase in such initiatives compared to 48 percent in 2014.
Pacific analyst Tess Newton Cain noted the extremely positive business outlook in the region over the next 12 months, noting that 78 percent of businesses anticipate an increase in export revenue over the year. This represents the highest level of confidence amongst respondents since the Covid-19 pandemic.
The agency, Pacific Trade Invest (PTI), has seen an increase in businesses seeking its assistance over the past four years. PTI, with offices in Australia, China, Europe, and New Zealand, is tasked with facilitating trade, investment, and tourism deals between the Pacific island countries and territories and other global economies. The top exports from the region include sugar from Fiji, palm oil from Solomon Islands and Papua New Guinea, and processed fish from American Samoa, Solomon Islands, and Fiji.
However, while exports to Europe and North America have returned to pre-Covid levels, there has only been a modest increase in exports to China from 9 percent in 2022 to 12 percent, still significantly lower than the 18 percent recorded in 2020.
Despite these challenges and factors such as restricted movement due to Covid-19 and various pests and diseases affecting crops, the region’s businesses remain optimistic. Cain noted that 71 percent of businesses plan to venture into new export markets within the next three years. However, she also pointed out that Pacific exporters are still facing hurdles such as access to finance and labor-related issues.