Fiji, May 12 -- Pacific economies are losing momentum as rising fuel costs, weaker tourism, inflation and repeated global shocks continue to strain governments, businesses and households, according to the World Bank Group's new Pacific Economic Update.

"Across the Pacific, growth keeps slowing and is likely to dip below three percent in 2026, amid high uncertainty and rising inflation."

The report warns that Pacific Island countries are facing a more fragile economic future, with growth this decade expected to remain well below pre-pandemic levels.

"These recurrent shocks and structural constraints are likely to keep growth about one percentage point below the 2010s pace this decade preventing incomes from returning to their pre-pandem...