The Pacific: Economy
The Pacific will see growth revive on developments in Papua New Guinea (PNG). Growth slowed substantially to 2.6% in 2016 as contraction hit PNG's oil and gas sector, slashing the growth rate in the subregion’s predominant economy by 10.0 percentage points to 2.0%. Elsewhere, growth picked up in 2016 in most Pacific economies—by more than 4 percentage points in Nauru, Samoa, and Vanuatu. Increased mining and agriculture output is forecast to spur a mild recovery in PNG, which will translate into a modest rebound for the subregion to 2.9% growth this year and 3.3% next. Steady or slower growth is expected in most other economies, with declines in public expenditure inducing relatively sharp slowdowns in Nauru, Samoa, and Timor-Leste. Although inflation eased in most economies in 2016, the aggregate inflation rate rose by 0.6 percentage points to 4.6%, driven by rising consumer prices in PNG. Rising oil and food prices will push inflation higher in most of the economies this year. Subregional inflation is expected to be 5.2% in 2017 and 5.4% in 2018. Read more from Asian Development Outlook 2017.
Economic forecasts for Pacific countries
|Micronesia, Federated States of||2.5||2.5|
|Papua New Guinea||2.5||2.8|
|Micronesia, Federated States of||1.5||2.0|
|Papua New Guinea||7.5||7.5|
|Micronesia, Federated States of||4.5||4.5|
|Papua New Guinea||7.7||6.7|
… = no data available, f = forecast number.
Source: Asian Development Outlook 2017