The Pacific is now expected to sustain another year of contraction in 2021 aftera forecast of 1.4% growth in the Asian Development Outlook was revised downto -0.6% in the Asian Development Outlook Update. Economic prospects inPapua New Guinea (PNG) are weighed down by weak mining and petroleumoutput, and a worsening pandemic situation, though an improved outlook forthe extractives sector should boost gross domestic product (GDP) growthnext year. The regional outlook also reflects the adverse impact of continuingcoronavirus disease (COVID-19) containment measures, particularly borderrestrictions, on business activities and tourism in the Cook Islands, Fiji, Palau,Samoa, Tonga, and Vanuatu. The subregion is forecast to rebound by 4.7%in 2022, from the previous projection of 3.8%, as wider vaccination coveragepermits progressive border reopening which is expected to boost trade andtourism, particularly in the Cook Islands, Fiji, and Vanuatu. Along with PNGand Solomon Islands, the aforementioned countries account for the bulk of thegrowth forecast in 2022.