Nauru and ADB
In the Spotlight
A new Asian Development Bank report says Pacific economies face lower growth and tighter fiscal conditions this year due to low commodity prices and severe cyclones.
The Government of Australia has provided additional financing of $4.74 million for an ongoing project designed to improve the efficiency, safety and capacity of the electricity supply in Nauru.
ADB’s interventions in the Pacific should help countries reduce the high cost of doing business and providing services, develop capacity to manage risks from economic shocks, natural disasters, and climate change, as well as promote the creation of competitive high value-added goods and services.
Economic growth in Nauru is estimated to have been slower than forecast in financial year 2015, but is projected to exceed the forecast in financial year 2016.
Nauru is the world’s smallest island nation, located significant distances from international markets.
In recent years, the economy has benefited from the presence of a regional processing center for asylum seekers, strong revenues from fishing licenses, and the liquidation of the Nauru Phosphate Royalties Trust. Economic and fiscal sustainability, however, remain key concerns for the government. The country relies on narrow and uncertain sources of revenue, with limited private sector opportunities. Education outcomes are improving but are still poor by international standards, while rates of noncommunicable diseases are among the highest in the world.
ADB and Nauru have been working together to strengthen public financial management, raise the performance of state-owned enterprises, improve service delivery, and address infrastructure needs.
Projects in Nauru
0.01(2014) Population in millions
1.8%(2009-2014) Average annual population growth rate