The World Bank has released its latest report, the Pacific Economic Update, which emphasizes the urgent need for increased investment to combat the region’s declining economic growth. Titled Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific, the report outlines the necessity for targeted investment to create jobs, enhance infrastructure, and build resilience against climate change in the face of global uncertainty.
These efforts are deemed essential for improving the living standards of Pacific communities and reducing the income disparity with wealthier nations. The report indicates that economic growth across the Pacific is expected to decrease to 3.6 percent in 2024, down from 5.8 percent in 2023, as the recovery from the pandemic continues to wane.
The slowdown in growth signals a less promising future compared to previous years. Contributing factors include diminished investment, increasing climate threats, and structural challenges, all compounded by ongoing global uncertainties that hinder progress.
The report warns that without swift actions to boost investment, Pacific nations may face difficulties in alleviating poverty and generating new economic opportunities for their populations. The Pacific Economic Update presents six key recommendations aimed at stimulating investment and ensuring that local communities reap the benefits of economic growth.
Recommendations focus on increasing investments in high-potential sectors such as agriculture, sustainable tourism, and the blue economy, which are crucial for job creation and supporting rural livelihoods.