The World Bank has released its newest report, the Pacific Economic Update, which emphasizes the need for significant investment to combat the region’s declining economic growth.
Titled Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific, the report underscores the critical importance of targeted investments to generate jobs, enhance infrastructure, and bolster resilience against climate change, especially in light of global uncertainties.
According to the findings, these investments are essential for improving the living standards of Pacific communities and lessening the income disparity with wealthier nations.
The report indicates that economic growth in the Pacific is projected to drop to 3.6 percent in 2024, a decrease from 5.8 percent in 2023, as the effects of the post-pandemic recovery fade.
The current trajectory reflects a slower growth pace, pointing to a less optimistic future compared to previous years.
This economic deceleration is attributed to diminished investment, escalating climate threats, and ongoing structural obstacles, all occurring within a climate of persistent global uncertainty that hampers advancement.
The report warns that without prompt initiatives to increase investment, Pacific countries may find it challenging to alleviate poverty and create new economic opportunities for their populations.
In response, the Pacific Economic Update presents six vital recommendations aimed at stimulating investment and ensuring that local communities benefit from economic growth.
Among these recommendations is an emphasis on greater investment in promising sectors such as agriculture, sustainable tourism, and the blue economy, which have the potential to generate jobs and support rural livelihoods.