Tourism boosts Pacific economic outlook, but climate change and rising prices pose risks

According to the Asian Development Bank, a revival of tourism is expected to boost economic growth in the Pacific in 2022 and 2023, but the COVID-19 pandemic, rising commodity prices and climate change continue to pose risks. bring.

The Pacific is expected to grow 4.7% this year and 5.4% next year.

After an average economic contraction of 0.6% in 2021, ADB’s Pacific Economic Monitor (PEM)Announced today, the Pacific region is projected to grow 4.7% this year and 5.4% next year.

The turnaround is expected to boost visitor numbers to the tourism-dependent economies of the Cook Islands, Fiji and Palau, as well as hopes that Papua New Guinea’s minerals sector will benefit from higher international commodity prices following Russia’s invasion of Ukraine. It reflects.

War between Russia and Ukraine also poses risks

However PEMs The war between Russia and Ukraine also poses risks to the subregion through rising import and transportation costs, accelerating inflation and increasing trade and fiscal deficits across the Pacific, it said. Other risks to the Pacific recovery include community transmission of COVID-19, some challenges in vaccine deployment, and regional vulnerability to climate change and disasters.

ADB Pacific Regional Executive Director Leah Gutierrez said: “It is critical that development partners, stakeholders and policy makers work closely together to ensure a continued recovery.”

up to date PEMs The prediction is Asian Development Prospects (ADO) 2022 The report, released in April, predicted economic growth in the Pacific region of 3.9% in 2022.

Pacific countries most vulnerable to climate change

of PEMs has identified Pacific countries as among the most vulnerable countries in the world to climate change and disasters, and the impact of these shocks will be exacerbated by the impact of COVID-19 and soaring commodity prices. It is Investing in climate and disaster resilience is essential to ensuring sustainable growth, and the costs may exceed governments’ own resources.

This issue of the policy brief is PEMs Find out how the Pacific is pursuing climate finance from innovative sources and how ADB is contributing to better climate response and disaster risk management . Continued efforts to strengthen public financial management support fiscal sustainability, restore resource buffers and rebuild a strong foundation against the next potential crisis.

of PEMs It also considers a wide range of issues affecting the Pacific economy, including:

  • Climate finance’s role in sustaining Fiji’s recovery amid rising inflation
  • North Pacific readiness for sustainable investment
  • Climate Finance and Water Security in Kiribati and Tuvalu
  • Climate Adaptation and Budgeting Amid Nauru’s Unstable Income
  • Financial Challenges of Climate Financing in Papua New Guinea
  • Promoting climate and financial resilience in the Solomon Islands
  • Calculate the cost and prepare for the future of the South Pacific economy
  • Challenges of Financing the Climate Emergency in Vanuatu

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia-Pacific while maintaining efforts to eradicate extreme poverty. Founded in 1966, it is owned by 68 members, 49 of whom are from the region. Tourism boosts Pacific economic outlook, but climate change and rising prices pose risks

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