Slider
Slider

|

Slider

Cook Islands economy to recover by 2023, says government

Regional News
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

RAROTONGA (Cook Islands News/Pacnews) — It will take about three years for the Cook Islands economy to return to pre-Covid-19 levels, government economists predict.

They estimate the economy has contracted by 9% from an average growth of 5.8% annually due to the spread of Covid-19 in the third quarter of the 2019/20 financial year which led to the crippling of the tourism industry.

This has reduced the gross domestic product of the country to NZ$483.3 million (U.S.$310.1 million) from the projected NZ$531.2 million (U.S.$340.8 million).

The economy is expected to contract further by 5.3% in the coming financial year before returning to pre-pandemic level by 2023, the economists say.

Fletcher Melvin, the chair of Private Sector Force, agrees the country could be returning to pre-Covid-19 level close to 2023.

He said these were all reasonable assumptions based on the “growth assumptions of tourism arrivals and the boarder opening up later this year and the reserves in place.”

However, Melvin warns the danger is the delay in the border opening and the tourists having the discretionary funds available for holidays due to the New Zealand economy and the global provider.

Cook Islands has been seeking a travel bubble with New Zealand soon to help recover the local economy. But new Covid-19 cases in New Zealand due to quarantine botch-ups there has put any immediate travel bubble in limbo.

previous arrow
next arrow
Shadow
Slider

Read more articles

Visit our Facebook Page

previous arrow
next arrow
Shadow
Slider