SYDNEY, Oct 15 Reuters Growth across the Pacific Islands is expected to slow to 3.6 this year, down from 5.8 in 2023, as a postpandemic rebound fades and Fiji, contributing half of the region39;s output, slowed significantly, the World Bank said on Tuesday.

A longterm slowdown was caused by weaker investment, increasing climate risks, and structural challenges, a report said. Without immediate action to ramp up investment, Pacific Island nations may struggle to reduce poverty and generate new economic opportunities, it added.

The Washingtonbased global lender said investment had shrunk on average across Pacific Island countries in seven out of the past 15 years.

In a troubling outlook, investment growth in 11 Pacific Island countries is expected to be around 1 annually this decade, significantly lower than the 4.2 average growth from 2000 to 2019, the report said.

Natural disasters cost an average 1.5 of gross domestic product per year, and many Pacific Island countries struggle to manage economic shocks after disasters such as cyclones, and are locked into a cycle of construction, destruction, and repair, the report said.

While several smaller Pacific Island countries reliant on tourism saw growth, as tourists from Australia and New Zealand returned, Fiji39;s growth is expected to slow to 3 in 2024.

Fiji39;s public debt, at 79 of GDP in 2024, is among the region39;s highest and onethird higher than prepandemic levels.

In Vanuatu, the liquidation of national…