World Bank highlights Pacific debt distress

A World Bank report suggests six Pacific countries are at a high risk of debt distress.

The report, named Raising Pasifika: Strengthening Government Finances to Enhance Human Capital in the Pacific is a public expenditure review for Kiribati, Nauru, Marshall Islands, Federated States of Micronesia, Palau, Samoa, Tonga, Tuvalu and Vanuatu.

According to RNZ Pacific, the report's executive summary says the Covid-19 shock, combined with overlapping shocks from natural disasters and global inflation, risks reversing a decade of progress in building human capital across the Pacific.

It said fiscal consolidation is required to protect medium-term financial sustainability.

The report makes several recommendations across several sectors including health, education, and social protection.


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