The economy contracted by 4.5% in 2020, reversing the 1.9% growth in 2019. Due to quarantine restrictions, the economically important fish catch declined by 40%. Log output declined by 12%, in part by the impact of Cyclone Harold, as was crop production. Construction slowed as equipment, materials and workers from overseas were delayed. While a pandemic-related stimulus package led to a 1.7%-growth in public-related services, the fiscal deficit widened to 2.5% of GDP. The economy is forecast to grow by 1.0% in 2021 and 4.5% in 2022 as fishing and construction rebound.
|Headline Inflation Rate 1||-2.5 (Dec20)||-1.4||2.7|
|Merchandise Export Growth 1||-11.5 (Jul21)||-11.5||33.6|
|Exchange Rate Index 2||94.8 (Oct21)||94.8||94.0|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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