The ADB cited this in its annual Asian Development Outlook.
The report said that overall growth in the region is predicted to drop from 5.1 per cent in 2008 to three per cent in 2009, with only Papua New Guinea and East Timor still growing moderately.It also stressed that among the five countries that will experience negative growth are Fiji, Samoa, Tonga and Palau.The reasons cited were the dropping remittances and tourism receipts.ADB bank’s director-general for the Pacific , Hafeez Rahman said that strong action is needed by the Pacific government with short term fiscal stimulus being the best option.He also cited in the report that “government spending focused on job creation and the poor, and tax cuts offers value for money, but care is needed to avoid budget blow-outs.”The ADB says it will assist the countries by increasing loans to the region by 50 per cent over the next 3 years.
