ADB downgrades 2014 Pcific GDP growth to 5.2%
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. ■