THE need for Pacific economies, Fiji included, to build economic resilience against a protracted war in the Middle East has been described as “unprecedented” by the Asian Development Bank (ADB).The ABD released its flagship Asian Development Bank Outlook April 2026 in Suva on Monday in which it projected moderate growth for its 14 Pacific member countries, with an average regional growth of 3.4 per cent in 2026 and 3.2 per cent in 2027.
“There is an unprecedented need for the Pacific to build resilience against the economic impacts of the Middle East conflict,” ADB director general for the Pacific Emma Veve said. “Higher oil prices, prolonged international commodity price spikes, and trade uncertainty in particular will weigh on subregional growth momentum.”
The ADO’s regional forecasts are informed by assumptions finalised on March 10 under exceptionally high uncertainty, envisaging an early stabilisation scenario for the conflict in the Middle East, the bank noted.
It added however that evidence since then points to a higher likelihood of more persistent disruptions.
For Fiji, whose fiscal space is under the spotlight with debt to GDP ratio projected at around 84 per cent at the end of July this year, raising concerns in some quarters on just how prepared the Government is to weather the coming war-related shocks, preparation is all about smart and sound management.
“Strengthening resilience – through sound macroeconomic management to address near-term pressures, alongside targeted social support and health system strengthening to tackle long-standing constraints – will be critical to sustaining inclusive growth,” regional director of ADB’s Pacific Subregional office Azusa Sato said.
