ADB downgrades 2014 Pcific GDP growth to 5.2%Staff writer ▼ | July 4, 2014
The Asian Development Bank (ADB) downgraded its 2014 gross domestic product (GDP) growth forecast for the Pacific region to 5.2 percent.The Asian Development Bank (ADB) downgraded its 2014 gross domestic product (GDP) growth forecast for the Pacific region to 5.2 percent.
The dowgrade is due to the impact of flooding in Solomon Islands and weak private sector activity in Timor-Leste. The latest economic growth forecast for Pacific economies is lower than the 5.4 percent projected in the Asian Development Outlook released by the Manila-based lender last April.
In its Pacific Economic Monitor, ADB said economic growth in Solomon Islands will contract by 1 percent this year, a reversal of the previous GDP growth outlook of 3 percent.
Solomon Islands was hit by tropical cyclone Ita in April, causing severe damage on agriculture and major public infrastructure.
ADB also cut non-oil GDP growth for Timor-Leste to 8 percent, from 8.5 percent projected earlier, due to slower-than-expected credit and consumption growth. ■