The World Bank has released 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, stresses the critical need for focused investment to generate jobs, enhance infrastructure, and strengthen climate resilience amidst ongoing global uncertainties.
These initiatives are essential for improving the living standards of Pacific communities and bridging the income gap with wealthier nations.
According to the report, 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 post-pandemic recovery wanes.
This deceleration indicates a more subdued economic outlook compared to previous years.
Factors contributing to this slowdown include reduced investment, escalating climate risks, and systemic challenges, compounded by persistent global uncertainties that hinder progress.
The report warns that without prompt measures to increase investment, Pacific countries may find it challenging to alleviate poverty and create new economic opportunities for their residents.
The Pacific Economic Update outlines six primary recommendations to enhance investment and ensure that local communities reap the rewards of economic growth.
These recommendations advocate for increased investment in high-potential sectors such as agriculture, sustainable tourism, and the blue economy, which could generate employment and bolster rural livelihoods.