The World Bank's Pacific Economic Update provides an assessment of the economies of 11 Pacific Island countries (PIC-11) in part 1 and highlights the potential of investment to broaden the economic horizons of the region in part 2. In 2024, growth across PIC-11 economies is estimated to have slowed significantly to 3.6 percent, following a robust 5.8 percent expansion in 2023. This slowdown reflects the diminishing impact of the post-pandemic recovery, particularly in Fiji, which accounts for over half of the output of the PIC-11. Fiji's growth is projected to decelerate to 3.1 percent, down sharply from 8 percent in 2023, as economic activity returns to pre-pandemic levels. Meanwhile, Solomon Islands is expected tomoderate growth of 2.5 percent, compared to 3 percent in 2023, due to structural challenges limiting the economy's capacity to sustain higher growth rates.
Authors
Vashakmadze,Ekaterine T., Agarwal,Vishesh, Warunthorn Milk Puthong, Stamm,Kersten Kevin, Vorisek,Dana Lauren
- Disclosure Date
- 2024/10/14
- Disclosure Status
- Disclosed
- Doc Name
- Pacific Economic Update : Diminishing Growth Amid Global Uncertainty - Ramping Up Investment in the Pacific
- Pages
- 84
- Product Line
- Advisory Services & Analytics
- Published in
- United States of America
- Rel Proj ID
- 4P-Papua New Guinea And Pacific Island Countries Macroeconomic Mon -- P506957
- Series Name
- Pacific Economic Update;
- TF No/Name
- TF0C5662-Pacific Economic Update FY25 GFR,TF0C5663-Papua New Guinea Economic Update FY25 GFR,TF0C5664-Macroeconomic Monitoring/SDFP,TF0C5922-MTI Macroeconomic Monitoring Activities CSF Fund GFR
- Unit Owning
- EFI-EAP-MTI-MacroFiscal-2 (EEAM2)
- Version Type
- Final
- Volume No
- 1
Table of Contents
- Diminishing Growth amid Global Uncertainty Ramping up Investment in the Pacific 1
- Preface and Acknowledgements 2
- Contents 3
- Preface and Acknowledgments 3
- Abbreviations and Acronyms 3
- List of Figures 3
- List of Tables 3
- List of Boxes 3
- Executive Summary 3
- Part 1. Economic Overview Short-term Resilience and Persistent Long-term Challenges in the Pacific 3
- Part 2. Ramping up Investment to Broaden Horizons 3
- References 3
- Annexes 3
- Abbreviations and Acronyms 4
- List of Figures 6
- List of Tables 7
- List of Boxes 7
- Executive Summary 8
- Ramping up Investment to Broaden Horizons 10
- Economic Overview Short-term Resilience and Persistent Long-term Challenges in the Pacific 12
- How Does the Global Economic Context Affect the PIC-11 13
- Recent Economic Developments and Near-term Outlook in the PIC-11 17
- Medium-term Growth Substantial Output Losses and Slow Income Convergence 40
- Risks to Economic Development 44
- Ramping up Investment to Broaden Horizons 46
- Investment Trends 47
- Barriers to Productive Investment 53
- The Way Forward 62
