World Bank warns Pacific economic growth to slow to 2.8 percent

Fiji (ANTARA) - The World Bank has warned that economic growth in the Pacific will slow to around 2.8 percent in 2026. Rising fuel and shipping costs, ongoing supply chain disruptions, and renewed global uncertainties continue to weigh on economies across the Pacific region. The report warns that repeated external shocks have become the “new normal” in the region, increasingly burdening governments, businesses, and households throughout the Pacific, according to the Fiji Broadcasting Corporation on Tuesday (12/5). Pacific countries remain highly vulnerable to fuel price volatility. Oil imports account for about 15 to 25 percent of total goods imports in many countries in the region. The World Bank states that persistent disruptions in fuel and shipping markets could further hinder economic growth in the next six to nine months. The report also highlights growing concerns over weakening fiscal buffers, as successive shocks exert ongoing pressure on government finances. The World Bank calls for stronger public financial management and targeted support for vulnerable households, while warning against implementing broad subsidies that could place further pressure on limited fiscal space.