RAROTONGA (Pacnews) — Economic growth is set to double in the Cook Islands in 2006-2007, the Cook Islands Herald newspaper reported.
The government’s half-year economic and fiscal update shows economic growth, which was estimated at around 1.8 percent in 2005-2006, was set to rise to about 3.5 percent in 2006-2007, it said.
Economic growth had been anticipated to slow during 2005 due to the cyclones which hit the country but the rate of growth was lower than expected.
Value added tax receipts for the period January to June 2006 were up 9.5 percent on the same period last year. Receipts for the July to November were also up 9.5 percent on the previous year.
The government said this demonstrates the continued underlying strength of the economy. Visitor arrivals were also up. In the calendar year to Oct. 2006, numbers were up 2.9 percent on the same period the previous year. Visitor arrivals are projected to increase by 3.9 percent in 2006-2007.
The newspaper reported that business confidence is also positive as evidenced by increased business loans and also building consents.