The World Bank has released its latest report, the Pacific Economic Update, urging for a significant increase in investment to combat the region’s declining economic growth.
The document, titled Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific, emphasizes the urgent need for focused investments aimed at job creation, infrastructure enhancement, and bolstering resilience against climate change, all within a context of global uncertainty.
These investments are essential for enhancing the livelihoods of Pacific communities and reducing the income disparity with wealthier nations.
The report reveals that projected growth in the Pacific has decreased to 3.6 percent in 2024, down from 5.8 percent in 2023, as the effects of the post-pandemic recovery begin to wane.
This deceleration indicates a less optimistic outlook compared to previous performance levels.
This slowdown is linked to diminishing investment, escalating climate risks, and ongoing structural challenges, compounded by persistent global uncertainties that hinder progress.
The report warns that without prompt measures to increase investment, Pacific countries may find it difficult to alleviate poverty or create new economic opportunities for their populations.
The Pacific Economic Update outlines six key suggestions to stimulate investment and ensure that local communities reap the benefits of economic growth.
These recommendations include enhancing investment in promising sectors such as agriculture, sustainable tourism, and the blue economy, which have the potential to generate jobs and support livelihoods in rural areas.