Economic growth in the Pacific could slow as energy disruptions spread, ADB warns

Economic growth in the Pacific is expected to slow due to worsening global conditions, linked to energy supply disruptions. The Asian Development Bank warns that growth could slow from 4.2% in 2025 to 2.8% in 2026, with downside risks potentially dragging it as low as 2.0%. Small island economies, such as Tonga, are particularly exposed to external shocks due to high dependence on imported fuels. The ADB is preparing targeted support for economies under strain and expanding investment in energy security and infrastructure projects.