North Pacific economies continued to expand in fiscal year 2012 (ended 30 September 2012 for all), but growth was generally more moderate than in previous years. In the Republic of Marshall Islands, growth was determined largely by movements in government spending, particularly on infrastructure projects.
A delay in the ongoing airport upgrade in the Marshall Islands had held growth in FY2011 at only 0.8%, lower than expected, but resumed activity helped restore growth to 1.9% the following year.
Another important contributor to growth in North Pacific economies has been earnings from fisheries. These rose as El Niño drove fish into colder, deeper waters such as those found in the exclusive economic zones of the Marshall Islands.
|Selected Economic Indicators (%) - Marshall Islands||2013||2014|
Current account balance
(share of GDP)
Source: ADB estimates.
Growth in gross domestic product (GDP) in the Marshall Islands is projected to accelerate to 2.3% in 2013 on the back of the recommenced airport rehabilitation project and spending related to the country’s hosting of the Pacific Islands Forum. Growth is projected to moderate again to 1.5% in FY2014 as airport rehabilitation winds down.
Longer-term growth prospects are weighed down by outmigration, the lack of growth drivers from the private sector, and annual decrements in compact grants.
Source: ADB. 2013. Asian Development Outlook 2013. Manila.