Bank forecasts 3pc economic growth in Pacific

The National Business

THE economies of 14 developing member countries in the Pacific associated with the Asian Development Bank’s (ADB) are forecast to grow by 0.3 per cent this year.
This was highlighted in the latest of the Asian Development Bank’s Pacific Economic Monitor released last week.
“After a pandemic-induced contraction of 5.8 per cent in 2020, the economies of ADB’s 14 Pacific developing member countries are forecast to grow by 0.3 per cent in 2021 and 4 per cent in 2022,” it said.
“The growth is expected on the back of the outlook for PNG, the sub-region’s largest economy, where a modest recovery is projected this year before strengthening in 2022.”
ADB director-general for the Pacific, Leah Gutierrez, said safe travel bubbles were expected to contribute to a gradual recovery, bringing hope to some of the smaller, tourism-dependent economies.
“Widespread vaccination, both within the Pacific economies and their major economic partners, will play a major role in boosting growth in 2022”.
Tourism in the Pacific remain largely closed, with arrivals between January and April plunging by 100 per cent compared with the same period last year.
Some Pacific destinations are looking to travel bubbles to revive their tourism sectors.
Issues affecting Pacific economies include:

  • TRAVEL bubbles of hope in the Cook Islands, Niue and Palau;
  • FIJI’s economic recovery efforts amid a new pandemic wave; and,
  • NAVIGATING the recovery, strategic fiscal policy and development support in Kiribati and Tuvalu.