Pacific Economic Monitor Midyear Review

Abstract

Growth in the Pacific islands (i.e., the Pacific region excluding PNG and Timor-Leste) is now projected to slow to 2.0% in 2013 from 2.5% last year. The outlook has softened from earlier in the year, mostly due to a substantial downgrade in the growth projection for Solomon Islands, which, in turn, is driven by weaker-than-expected gold production in early 2013. Growth projections for Kiribati and Nauru have also been downgraded, reflecting continuing delays in the implementation of planned infrastructure projects in the former, and heightened political risks and a more subdued outlook for phosphate exports in the latter.