Adb Projects Pacific Economy To Expand In 2023, 2024

MANILA, Dec. 13 (Bernama-Xinhua) -- The Pacific economy is projected to continue expanding in 2023-2024, while governments need to generate additional resources for public infrastructure and services, according to the latest report of the Asian Development Bank's (ADB) released on Wednesday, reported Xinhua news.

Recovery in tourism and spending on infrastructure has continued to drive Pacific economies, and the subregion is expected to grow by 3.5 per cent in 2023 and 2.9 per cent in 2024, largely driven by higher growth in Fiji, the new issue of ADB's Pacific Economic Monitor (PEM) said.

Subdued growth of 2 per cent in 2023 is seen for Papua New Guinea (PNG), the subregion's largest economy, due to slower-than-expected expansion in the non-resource sectors, said the report, adding that growth in PNG is expected to remain at 2.6 per cent in 2024.

While tourism and public infrastructure spending are expected to sustain economic expansion in 2024, capacity constraints pose significant downside risks. Vulnerability to disasters and extreme climate events also continue to have potential implications for growth, the report said.

"Recovery in tourism and infrastructure spending is driving growth in the Pacific, but continued improvements in the quality of public infrastructure and services remain necessary," said ADB Director General for the Pacific Leah Gutierrez.

"Domestic resource mobilization is key to supporting these essential engines for realizing poverty alleviation and economic development," she said.

The PEM is a biannual review by the ADB on economic developments and policy issues of 14 developing economies in the Pacific. 

--BERNAMA-XINHUA