Tongan Prime Minister and Forum Chair Dr. ʻAisake Eke delivered an important address on Wednesday, emphasizing the growing global uncertainties that Pacific Finance Ministers must navigate, particularly in light of the shifting U.S. policies under the new Trump administration. His remarks came during the Special Forum Economic Ministers Meeting (FEMM) held in Nuku’alofa, where ministers convened to address pressing economic recovery and climate challenges that Pacific islands are currently facing.
Dr. Eke noted that the situation is unprecedented, stating, “We have a new sheriff in town and his policies have implications for the World and our region,” highlighting the increased stakes for the Pacific. Although there are projections indicating that economic growth could exceed pre-pandemic levels by 2025, he warned that the global trade environment is still beset by risks stemming from geopolitical tensions and climate-related disasters that threaten the recovery from COVID-19. The International Monetary Fund forecasts a real GDP growth of 4.0 percent for Pacific island economies in 2025, up from the 3.3 percent expected for 2024.
During the meeting, three significant regional initiatives were endorsed to tackle economic volatility and climate threats: the Pacific Roadmap for Economic Development (PRED), the Climate Finance Access and Mobilisation Strategy (CFAMS), and the Pacific Resilience Facility (PRF). Dr. Eke underscored the urgency of these initiatives, asserting, “We need to build and strengthen our communities to be resilient against the impacts of climate change and disasters.” The PRF will provide a Pacific-led financing mechanism aimed at enhancing climate resilience, while CFAMS focuses on bridging critical financing gaps essential for sustainable development.
This gathering echoed previous discussions, particularly the call for enhanced regional integration as emphasized by Finance Minister Prof Biman Prasad. The current geopolitical landscape necessitates that Pacific nations work closely with partners like Australia and New Zealand to further their collective economic objectives.
The ministers’ endorsement of these initiatives is a hopeful signal of their commitment to unite and build a resilient and sustainable Blue Pacific Continent, ready to address both immediate and future challenges. The FEMM has set a productive foundation for ongoing dialogues, with the upcoming Forum Economic Ministers Meeting slated for August 2025.
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