admin's picture

PNG, Vanuatu lead the region with long-term growth

WELLINGTON, New Zealand (Radio New Zealand International, March 13, 2012) – The Asian Development Bank (ADB) says several Pacific economies are expected to keep growing in the next two years.

Papua New Guinea has had ten consecutive years of growth, although the ADB says in its latest report that this will fall back from 7.5 percent this year to 4.5 percent next year.

The Bank also notes Vanuatu has now had nine consecutive years of growth.

The ADB says these achievements are impressive but if the rest of the Pacific is to see similar success, there needs to be more investment in public infrastructure, improved government fiscal management and public sector efficiency.

The ADB projects the Marshall Islands economy will grow by 5.4 percent this year, up from five percent last year, but drop back to 2.6 percent in 2013.

It says tourist arrivals, particularly in the Cook Islands, Fiji, Palau and Samoa, reached record levels in 2011, and the outlook for this year is positive.

It also says on the back of resumed phosphate exports Nauru should sustain relatively strong growth this year and next.

[PIR editor’s note: Larger Pacific countries, such as Papua New Guinea, Timor Leste and the Solomon Islands have seen increases based on natural resource industries. Smaller countries, according to the ADB, "are the ones that really need to lift growth and sustain higher levels of growth to redress some of the negative impacts of inflation, and also to help address the growing population issues and to keep the gross national income relatively high." ]

Rate this article: 
No votes yet

Add new comment