In 2012, inflows of development partner assistance, the positive effect of the El Niño weather pattern on fish stocks near the equator, and the introduction of a new fishing licensing scheme boosted government revenues and bolstered economic growth in Tuvalu and other small Pacific island economies. Conversely, continuing declines in seafarers’ remittances stemming from weak global trade weighed down growth in Tuvalu.
Expanded education and private retail services in Tuvalu contributed to growth of 1.2% in 2012 after 3 consecutive years of economic contraction.
|Selected Economic Indicators (%) - Tuvalu||2013||2014|
|Gross domestic product (GDP) growth||1.3||1.5|
Current account balance
(share of GDP)
... = data not available.
Source: ADB estimates.
Infrastructure upgrades will likely be the primary drivers of growth for the small Pacific island economies over the next 2 years. In Tuvalu the airport upgrade, funded by development partners, and continued retail expansion will drive economic growth of 1.3% in 2013 and 1.5% in 2014.
Source: ADB. 2013. Asian Development Outlook 2013. Manila.