World Bank warns of slower Pacific growth – FBC News

As the pandemic recovery fades growth in the Pacific is slowing says the World Bank in its latest Pacific Economic Update.

In its October report, the World Bank says weaker investment, natural disasters, and climate change are expected to keep holding back growth.

This slowdown it says will make it harder for people in the region to improve their quality of life, with poverty likely to remain high compared to countries with similar incomes.

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It says the growth in Pacific Island countries slowed to an estimated 3.6 percent in 2024, down from 5.8 percent in 2023.

This it says was driven by Fiji, which contributes over half of the region’s output, and a slowdown in Solomon Islands due to structural challenges.

The report titled “Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific”, also states that in Fiji, inflation is expected to average 3.6 percent in 2025-2026 following a temporary spike in 2024 due to tax adjustments.

The World Bank also states that Fiji’s growth is estimated to slow to 3.1 percent in 2024 but is projected to recover slightly in 2025, aligning with its pre-pandemic trend.

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