A HISTORY of repeated shocks to Pacific economies, Fiji included, warrants the construction of strong economic foundations that will stand the test of time.
The secret to that, according to the World Bank’s latest Pacific Economic Update (PEU May 2026), lies in the underutilised and underexploited youth population.
Releasing the publication in Suva early this week, the World Bank noted that its 11 member countries in the region have weathered repeated shocks since 2000, weakening the effectiveness of short-term responses
“Since 2000, 11 Pacific Island countries have weathered repeated shocks—from natural hazards to the pandemic and sharp spikes in fuel and shipping costs, most recently linked to conflict in the Middle East.
“These recurrent shocks and structural constraints are likely to keep growth about one percentage point below the 2010s pace this decade—preventing incomes from returning to their pre pandemic trend.
“With fiscal space narrowing and turbulence unlikely to fade, short-term responses alone can no longer put the region on a stronger path.
“Yet the region’s young demographic profile offers untapped potential.”
Unlocking youth potential, it said, offers a powerful path to stronger growth as Pacific economies move to manage current shocks.
“By 2035, today’s youth could account for one-third of the Pacific labor force—yet only about half of working-age adults are employed.
“Nearly 20 percent of youth are not in education, employment, or training.
“Jobs remain concentrated in subsistence, the public sector, and informal work.
“Private-sector constraints continue to weaken the link between growth and jobs.”
The World Bank said realising youth potential called for a shift toward a jobs-first approach.
“This approach rests on three mutually reinforcing pillars: Foundations—skills, reliable water and energy, resilient transport, and digital connectivity; Business Environment and Market Access—stronger competition and streamlined permits/procurement; and Finance and Private Capital—unlocking investment and expanding access to finance, including in remittance-dependent economies.
“Fiscal resilience must underpin this shift. Rebuilding fiscal space strengthens countries’ ability to manage future shocks and creates room for the investments that support jobs and private sector growth.
“This means restoring buffers, keeping spending focused, and continuing to improve public financial management.”
According to the bank, five sectors that offer the strongest job creation potential are: tourism; agribusiness and sustainable fisheries; health and care services; resilient infrastructure and maintenance; and digitally delivered services.
In its PEU, the World Bank is projecting regional growth to slow to 2.8 percent in 2026, as rising fuel and shipping costs, supply chain disruptions and renewed global volatility place fresh pressure on Pacific economies.
