Pacific region’s economic growth to slow down: ADB

Economic growth in the Pacific region is expected to slow to 6.0 percent this year from 7.0 percent in 2011, the Asian Development Bank (ADB) said.

The slow down is driven by lower growth in large resource-exporting economies that dominate regional growth, said the latest Pacific Economic Monitor released here Tuesday.

The Pacific region continues to grow at rates above the global average, and economic troubles in the eurozone will likely have only modest and indirect effects on Pacific economies, reported Xinhua.

Australia, New Zealand and the US play larger roles in driving Pacific growth and reported either steady growth or economic recovery in 2011, which is seen to extend into 2012.

Inflation in the Pacific region is projected to fall from 8.6 percent in 2011 to 6.6 percent in 2012 due to an easing in international food prices. Appreciation in the values of Pacific currencies could further lessen inflationary pressures by making imports cheaper for some economies in the region.