Pacific region economy to grow 3.3% in ’24 – ADB

The Pacific region is projected to grow by 3.3 per cent in 2024 and 4 per cent in 2025, according to the latest Asian Development Bank (ADB) Pacific Economic Monitor (PEM).

While this positive outlook is driven by factors such as the recovery of resource extraction in Papua New Guinea, stable tourism, and public infrastructure projects, the region continues to face significant challenges.

However, a wide range of factors—including labour shortages, reduced fiscal space, and exposure to climate change and disaster risk—pose downside risks to the outlook, according to the report.

“This positive growth is good news for the Pacific, but significant downside risks highlight the ongoing need to build resilience,” said ADB Director General for the Pacific Leah Gutierrez.

The PEM delves into various aspects of building resilience in the Pacific, including climate and disaster resilience strategies for Cook Islands, Samoa, and Tonga, and an analysis of Fiji’s fiscal year 2025 budget in the context of debt management and economic growth.

Other articles explore public financial management challenges in Papua New Guinea, Solomon Islands, and the Marshall Islands, Federated States of Micronesia, and Palau.

The PEM is ADB’s biannual review of economic developments and policy issues in its 14 Pacific developing member countries. ADB is committed to supporting the region in achieving a prosperous, inclusive, resilient, and sustainable future.

Attribution: Asian Development Bank’s Pacific Economic Monitor report

Subediting: Y.Yasser