The World Bank has released its latest report, titled “Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific,” emphasizing the urgent need for increased investment to counteract the region’s declining economic growth.
The report underscores that investment is essential for job creation, infrastructure improvement, and enhancing resilience to climate change within the context of global uncertainties. These measures are critical for elevating the living standards of Pacific communities and reducing the income disparity with wealthier nations.
According to the report, economic growth in the Pacific has declined to 3.6 percent for 2024, compared to 5.8 percent in 2023, as the effects of the post-pandemic recovery diminish. This slowdown reflects a weaker economic outlook compared to historical trends.
The decline is driven by reduced investment, increasing risks from climate change, and various structural challenges, all of which are exacerbated by ongoing global uncertainties affecting progress.
The report warns that without prompt action to foster investment, Pacific nations may find it difficult to alleviate poverty or create new economic opportunities for their populations.
The Pacific Economic Update presents six primary recommendations aimed at stimulating investment and ensuring that local communities reap the benefits of economic growth. These recommendations include enhanced investment in promising sectors such as agriculture, sustainable tourism, and the blue economy, which have the potential to generate employment and support rural livelihoods.