The World Bank has unveiled its latest Pacific Economic Update, urging a significant increase in investment to tackle the region’s declining economic growth.
The report, titled “Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific,” emphasizes the critical need for targeted investments to generate jobs, enhance infrastructure, and bolster resilience against climate change in light of ongoing global uncertainties.
These initiatives are essential for improving the living standards of Pacific communities and bridging the income divide with more affluent nations.
According to the report, economic growth in the Pacific has decreased to 3.6 percent in 2024, down from 5.8 percent in 2023, as the recovery from the pandemic slows down.
The forecast points to a gradual decline in growth, indicating a less optimistic outlook compared to previous years.
This deceleration is linked to diminished investment levels, heightened climate threats, and ongoing structural challenges, compounded by persistent global uncertainties that hinder progress.
The report warns that without swift measures to boost investment, Pacific nations may find it difficult to alleviate poverty or create new economic opportunities for their populations.
The Pacific Economic Update outlines six key recommendations aimed at stimulating investment and ensuring that local communities can benefit from economic development.
These recommendations include increased investment in high-potential sectors such as agriculture, sustainable tourism, and the blue economy, which can provide jobs and enhance rural livelihoods.