World Bank – Pacific Economic Update, Mar 2024

In 2023, the Pacific islands experienced a deceleration in growth but still remained robust at 5.5 percent, following a historically high growth rate of 9.1 percent in 2022 led by Fiji. Fiji's output surpassed pre-pandemic levels in 2023 despite a notable deceleration, with growth rates halving from 20 percent in 2022 to eight percent in 2023, driven by rising tourism, household consumption, and remittances. The PIC-11, excluding Fiji, experienced a rebound of 2.7 percent growth in 2023, with a gradual pickup in tourism and robust inflows of remittances and grants. Solomon Islands rebounded to 1.9 percent growth in 2023 fueled by hosting the Pacific Games and investments in energy and transport sectors. Growth in the tourism and remittances-led countries surpassed growth in sovereign rent-led countries. Debt dynamics improved in 2023, with public debt decreasing in eight economies but slightly increasing in Solomon Islands and Vanuatu due to continued fiscal support and slower growth. By the end of 2023, regional output nearly reached pre-pandemic levels, with Fiji leading the recovery.