Fiji, Oct. 16 -- Pacific Island economies are bearing a disproportionate impact from rising food and fuel costs, with the International Monetary Fund (IMF) downgrading its 2026 growth forecast as climate risks, heavy import dependence and limited fiscal space continue to constrain economic resilience.

IMF Deputy Director of the Asia and Pacific Department, Sonali Jain-Chandra said growth across Pacific Island economies was projected at 2.6 percent in 2026 and 2.5 percent in 2027.

Responding to a PACNEWS question at a virtual press conference in Bangkok on the sidelines of the IMF Annual Meeting, Jain-Chandra said the 2026 forecast had been reduced by 0.2 percentage points from the Fund's April World Economic Outlook, while the projectio...