MANILA, April 9 (Xinhua) -- Economic growth in the Pacific is projected to moderate to 3.9 percent in 2025 and 3.6 percent in 2026, said a new report released by the Asian Development Bank (ADB) on Wednesday.

The Asian Development Outlook (ADO) April 2025 said the outlook reflects anticipated easing in tourism, a key growth driver in many economies in the subregion, and muted petroleum production in Papua New Guinea, the subregion's largest economy.

"Despite the growth that has been realized in recent years, the Pacific remains at risk from external shocks," said ADB Director General for the Pacific Emma Veve.

The report noted that while economies in the region are resilient, faster and larger-than-expected changes in U.S. trade and economic policies pose risks to the outlook. Along with higher U.S. tariffs, increased policy uncertainty and retaliatory measures could slow trade, investment, and growth.

The growth forecasts were finalized before the announcement of new tariffs by the U.S. administration on April 2, so the baseline projections only reflect tariffs in place previously, the Manila-based bank said in a press release. Enditem

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