According to the Asian Development Bank, a drop in the Pacific's growth is due to the slowdown in Papua New Guinea.
ADB's Director General for Pacific Carmela Locsin said improved information communication technology is no longer a luxury, but a necessity.
Recovery in the larger economies is expected to see regional growth at 3.3% in 2018.
However, the price prospects for Pacific exports are mixed and inbound tourism may slow down.
The ADB Pacific Department notes the Pacific countries' remoteness is a fundamental constraint to economic development.
