Samoa and other Pacific nations have been urged to ramp up investments to create jobs and improve infrastructure to address the region’s slowing economic growth. 

The World Bank appealed on Tuesday when it launched its latest Pacific Economic Update, ‘Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific’. 

The summary and key findings highlight the urgent need for targeted investment to create jobs, improve infrastructure, and build resilience against climate change amid global uncertainty. 

These actions are crucial for improving the livelihoods of Pacific communities and narrowing the income gap with higher-income nations says the World Bank.

Findings show that following two years of strong recovery, Samoa's growth is projected to moderate to a still-strong 5.3 per cent in 2025. 

“Inflation eased to an estimated 3.6 per cent in 2024 and is expected to decline further to three per cent in 2025 aligning with the central bank’s target,” the findings on Samoa’s outlook state. 

“Public debt is projected to gradually decrease to 22.5 per cent of GDP by 2025, reflecting stronger economic growth, fiscal surpluses, and regular debt repayments.” 

 The report is the region’s leading snapshot of the health, challenges, and trajectory of Pacific economies using new World Bank research looking at 11 Pacific island economies. 

This includes specific data on debt, inflation, and growth in Samoa.

The Central Bank of Samoa (CBS) reported the nation’s economy grew by 12.3 per cent in real terms during the March 2024 quarter compared to the same quarter last year. 

This was mostly due to increased production in various sectors such as “personal and other services”, business services and commerce as well as higher government tax revenue collection in the quarter. 

On an annual average the CBS stated Samoa’s economy expanded by 11.3 per cent in real terms much stronger than anticipated.