Pacific Economic Monitor - December 2013

Description

 

This issue of the Pacific Economic Monitor analyzes 2013 budget outcomes and 2014 budget plans of ADB's Pacific developing member countries.

The theme of the policy briefs included in this issue is the economics of climate change and climate change financing challenges in the Pacific.

 

Highlights

  • Weak global growth is impacting the Pacific largely through lower commodity prices. Subdued global demand is keeping international commodity prices low—adversely affecting agriculture, mineral, and forestry export revenues of some Pacific economies.
  • Strong revenue performance in smaller Pacific economies has continued in 2013, while larger economies have struggled. For the second consecutive year, fishing license revenues are exceeding budget targets in Kiribati, the Marshall Islands, Nauru, and Tuvalu due to rising rates under a regional vessel day scheme. Tax collections in the Cook Islands, Fiji, and Vanuatu are also higher than expected.
  • Fiscal pressures are expected to increase in 2014. Public investments to support postcyclone recovery are expected to drive up debt levels and slow Samoa’s progress toward fiscal consolidation in the near term.
  • Climate change economic impacts and adaptation efforts in the Pacific. This issue’s policy briefs address the economics of climate change and climate change financing challenges in the Pacific.