The National, Wednesday July 3rd, 2013
LOW commodity prices could make it difficult for the government to continue stimulus measures to stimulate the economy, the Asian Development Bank’s latest Pacific Economic Monitor has said.
The report has trimmed the 2013 economic growth forecast for the Pacific region to 5%, down 0.2%, Radio New Zealand reports.
It comes on the back of slower gold production in Solomon Islands, lower growth prospects in Kiribati and Nauru and in Papua New Guinea persistently lower prices for its commodity exports.
The report also predicts the situation in PNG could make it difficult for the government to continue the stimulus measures it has adopted to counter the adverse impact of a slowdown in construction as the liquefied natural gas pipeline work is completed. – Radio New Zealand