SUVA (Pacnews) — The Asian Development Bank has advised Cook Islands authorities to review their GDP forecast for the period 2002 to 2003. The ADB Outlook 2002 report has recommended a revised annual growth rate of 2.5 percent for the next few years, adding that inflation rate should fall between the range 2 to 3 percent.
The annual report said the GDP growth rate of 3.3 percent forecast for this year was made prior to the Sept. 11 terror attacks, which was based on the country’s vibrant tourism and black pearl industries as primary drivers of the economy.
However, it said the gloomier global economic outlook following last year’s terrorist activities warrants the reduced growth rate.
This, it said was compounded by the loss of international air services to the Cooks, as well recent concerns over the pearl oyster mortality rates.
Emigration of “economically active population” is also another factor not to be overlooked.
