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Survey forecasts slowdown of regional economies

  A recent survey projects Pacific Island developing economies will experience an economic slowdown in coming years. The United Nations Economic and Social Commission for Asia and the Pacific’s (UNESCAP)
25 May 2016 11:56
Survey forecasts slowdown of regional economies
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A recent survey projects Pacific Island developing economies will experience an economic slowdown in coming years.

The United Nations Economic and Social Commission for Asia and the Pacific’s (UNESCAP) suggests growth rates will moderate to 3.4 per cent in 2016 and 2.7 per cent in 2017.

The report indicated that economic growth in Fiji moderated to a still high rate of four per cent in 2015 compared with 5.3 per cent in 2014.

But, it anticipated the economy to slow down at a 2.2 per cent growth rate this year before rebounding to 3.1 per cent in 2017.

In addition, the survey highlights the major drivers of economic growth in 2017 will be the tourism-linked sectors, particularly additional investment in hotel rooms, and projects to upgrade road and airport infrastructure and air carriage capacity.

The Head of UNESCAP’s Pacific Office, Iosefa Maiava, said: “Policymakers are advised to use all available policy levers, including countercyclical fiscal policy and supportive social protection measures.”

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