This edition of the Pacific Economic Monitor discusses the impacts of COVID-19 and provides an overview of other current economic and development issues in Pacific developing member countries of ADB.

The Pacific is expected to recover with moderate growth of 1.4% in 2021 and 3.8% in 2022, with tourism and widespread vaccination playing key roles. This issue of the Pacific Economic Monitor provides insights on experiences and lessons of Pacific island countries in striking a delicate balance between health and economic concerns. It also outlines ADB's new development strategy to help the region address the impacts of the coronavirus disease (COVID-19).

This edition of the Pacific Economic Monitor discusses the outlook for 2021 and key issues for recovery from the coronavirus disease (COVID-19) crisis, including vaccine procurement and distribution.

Pacific economies are bouncing back as tourism recovers and infrastructure projects resume, but inflationary pressures and vulnerability to natural hazards remain downside risks. This edition of the Pacific Economic Monitor tracks the rebound of some tourism-dependent economies; explores new opportunities from agriculture, digitalization, and fisheries; and analyzes ways to mitigate fiscal risks and support sustainable economic growth. It highlights how policies can better support women entrepreneurs and how strengthening fiscal reserves can help countries recover more quickly from shocks.

This issue of the Pacific Economic Monitor explores how the region can reopen and rebuild. Besides safely resuming travel and protecting health, a resilient recovery will depend on promoting fiscal sustainability and strengthening economic management, including regional cooperation to revitalize tourism.

The world economy is experiencing a very strong but uneven recovery, with many emerging market and developing economies facing obstacles to vaccination. The global outlook remains uncertain, with major risks around the path of the pandemic and the possibility of financial stress amid large debt loads. Policy makers face a difficult balancing act as they seek to nurture the recovery while safeguarding price stability and fiscal sustainability. A comprehensive set of policies will be required to promote a strong recovery that mitigates inequality and enhances environmental sustainability, ultimately putting economies on a path of green, resilient, and inclusive development. Prominent among the necessary policies are efforts to lower trade costs so that trade can once again become a robust engine of growth. This year marks the 30th anniversary of the Global Economic Prospects. The Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.

This issue highlights the economic prospects of the Pacific developing member countries (Pacific DMCs) and stresses the importance of improving the quality and access to basic and sustainable utilities in the Pacific DMCs. Access to electricity is low in the Pacific, particularly in the more remote and less developed parts of the subregion. Factors contributing to this include dependence on costly fossil fuels for power generation, inadequate investment in infrastructure, and electricity services that may be beyond the means of poorer rural households. To help address these challenges, most Pacific governments are taking steps to shift toward renewable energy and ultimately meet ambitious targets under international climate change commitments. Further, they have made strategic investments in more effi cient transmission networks, and better collection and payment systems.