Pacific nations hit hard: Study

THE Covid-19 pandemic continues to have a negative impact on businesses in the Pacific, particularly in countries where tourism plays a major role in the economy despite these countries being spared by the pandemic, a report says.
According to BSP quarter one Pacific economic and market insight, growth in these economies were expected to remain around 9 per cent below their pre-pandemic projected levels.
It said the cumulative output loss over 2020-2022 was estimated to be around 10 per cent of the 2019 level, due to the collapse in global tourism and travel.
The recovery for Pacific nations depend on the effectiveness of vaccine rollouts and policy support.
While economic growth for small island nations such as Samoa, Tonga and the Cook Islands would enter into recession this year, Fiji and the Solomon Islands economies were projected to be gradual but contingently grow by 5 per cent and 1.5 per cent respectively.
Surprisingly, Vanuatu has been projected to an increase in economy to 3.2 per cent in 2021, a 12.4 per cent increase from 2020 due to increased fiscal spending on infrastructure.