The World Bank has released its latest Pacific Economic Update, urging a significant increase in investment to counteract the region’s declining economic growth. The report, titled Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific, stresses the critical need for targeted investments to generate employment, enhance infrastructure, and strengthen resilience against climate change amidst global instability.
The findings highlight that economic growth in the Pacific is expected to drop to 3.6 percent in 2024, down from 5.8 percent in 2023, as the post-pandemic recovery wanes. This ongoing decline indicates a slower growth trajectory and a weaker outlook compared to previous performance levels.
Contributing factors include reduced investment, escalating climate risks, and persistent structural challenges, compounded by global uncertainties that hinder progress. The report warns that without prompt efforts to increase investment, Pacific nations may find it difficult to alleviate poverty or create new economic opportunities for their populations.
The Pacific Economic Update outlines six essential recommendations focused on driving investment and ensuring local communities reap the benefits of economic growth. These recommendations advocate for increased investment in high-potential sectors such as agriculture, sustainable tourism, and the blue economy, which are capable of creating jobs and supporting rural livelihoods.