Cook Islands: Economy
Growth expectations for the South Pacific economies remain largely in line with the Asian Development Outlook (ADO) 2014 forecasts in April.
In the Cook Islands, growth in Fiscal Year 2014 (ended 30 June 2014) is estimated to have moderated by 1.0 percentage point from FY2013 on lower than anticipated growth in tourism receipts and a decline in infrastructure spending. Tourist arrivals rose by 1.6% in FY2014, 1.8 percentage points less than in FY2013. A contraction in the number of visitors from New Zealand - the largest source market - was offset by relatively strong growth in visitors from other markets. Arrivals from Australia, the country’s second most important market, are expected to remain buoyant. Growth is still projected to accelerate to 2.5% in FY2015, on the assumption that tourism growth will revert to long-term trends.
|Selected Economic Indicators (%) - Cook Islands||2014||2015|
|ADO 2014||Update||ADO 2014||Update|
|Current Account Balance (share of GDP)||--||--||--||--|
-- = data not available
Source: ADB estimates.
Declining international food and fuel prices have generally kept inflation in the South Pacific economies below ADO 2014 projections.
In the Cook Islands, inflation slowed by 1.0 percentage point from the government’s revised 2.6% estimate for FY2013, mainly because housing and transport prices declined. The ADO 2014 forecast of higher inflation in FY2015 is supported by the outlook for strengthening growth.
Source: ADB. 2014. Asian Development Outlook 2014 Update. Manila.