Pacific Economic Growth Slowing After Post-Pandemic Rebound

March 5, 2024--Investment in education critical to address significant learning gaps, foster sustainable growth, report finds.
Growth in Pacific island countries is estimated to have slowed in 2023 and is forecast to continue to decelerate in 2024 and 2025 as the temporary boost from the COVID-19 pandemic recovery fades and fiscal policies begin to tighten, the World Bank said in its semi-annual economic outlook for 11 Pacific island countries.

Investments in key drivers of long-term growth-education, in particular-will be crucial to sustaining economic momentum, the World Bank's new report, Pacific Economic Update- Back on Track? The Imperative to Invest in Education says.

Growth in 2023 among the Pacific island countries surveyed eased to an estimated 5.5% following a historically high expansion of 9.1% during 2022, the first year of recovery from the pandemic. Economic activity was buoyed by tourism, household consumption and remittances, and was further supported by accommodative fiscal policies.