SUVA, May 12 (Xinhua) -- According to the World Bank Group's latest Pacific Economic Update, regional economic growth is projected to slow to 2.8 percent in 2026.
Rising fuel and shipping costs, ongoing supply chain disruptions, and renewed global uncertainty continue to weigh on Pacific economies.
The report warns that repeated external shocks are becoming the "new normal" for the region, placing increasing strain on governments, businesses, and households across the Pacific, Fiji Broadcasting Corporation reported on Tuesday.
Pacific nations remain highly vulnerable to fuel price volatility. Oil imports account for roughly 15 to 25 percent of total merchandise imports in many of these countries. The World Bank noted that persistent disruptions in fuel and shipping markets could further dampen economic growth over the next six to nine months.
The report also highlights mounting concerns over deteriorating fiscal buffers, as successive shocks put sustained pressure on government finances.
The World Bank is calling for stronger public financial management and targeted support for vulnerable households while warning against broad subsidies that could place further strain on limited fiscal space. ■
