SUVA, May 19 (Xinhua) -- Pacific nations are facing mounting economic pressure as rising global fuel prices, escalating conflict in the Middle East and worsening climate-related vulnerabilities continue to strain government finances and household budgets across the region, a senior Fijian official warned here on Tuesday.
Speaking at a meeting of the Pacific Financial Technical Assistance Center, Fijian Minister for Finance, Commerce and Business Development Esrom Immanuel said that Pacific economies remain highly exposed to global shocks because of their heavy dependence on imported fuel, food and essential goods.
Immanuel said the Pacific was one of the world's most strategically important regions, yet also among the most vulnerable to climate change and external economic disruptions.
He noted that regional economic growth had slowed to about 3.4 percent in 2025 and was expected to weaken further as international uncertainty deepens.
"For import-dependent economies like ours, these prices are straining household budgets, limiting fiscal space, and constraining our ability to invest in future development," he said.
The minister highlighted growing instability in the Middle East and disruptions to global oil supply chains as key factors driving up fuel and transport costs worldwide.
He also warned that tourism-reliant economies across the Pacific could face further setbacks as higher aviation fuel prices push up international airfares and travel expenses, potentially slowing visitor arrivals.
Pacific governments have increasingly been pushing for greater investment in renewable energy and climate resilience projects as part of broader efforts to reduce dependence on imported fossil fuels and strengthen long-term economic stability. ■