Asia Regional Integration Center

Among Pacific member countries, Cook Islands suffered the largest contraction in FY2021 (ended 30 June 2021). GDP contracted by 29.1% with accommodation falling by 81.3% and travel by 65.1%. After these large declines, economic recovery will begin in FY2022 with GDP growth expected to rise by 9.1% as tourism resumes. This will accelerate further to 11.2% in FY2023. Inflation increased to 2.2% in FY2021 largely on higher fuel prices, which raised costs for transportation and imported food and beverages. Prices are forecast to accelerate to 4.3% in FY2022 before easing to 4.0% in FY2023. The current account deficit doubled to 12.5% of GDP in FY2021 largely due the decline in tourism—it is forecast to drop to 7.0% of GDP in FY2022 and revert to a surplus of 5.1% in FY2023 as tourism receipts recover.