ADB offers $10 mln to pump-start Cook Islands economy
- Source: Xinhua
- [12:57 October 14 2009]
- Comments
The Asian Development Bank (ADB) is providing 10 million US dollars in budget support to the Cook Islands that will give a short-term boost in economic activity in response to the global financial crisis.
The loan, approved by ADB's Board of Directors, supports the first of two subprograms under the Cook Islands Economic Recovery Support Program, which will first help the government kick-start the economy by allowing it to increase spending on badly needed infrastructure in this financial year.
In a statement, ADB said the loan will lift economic activity in the short term and provide the productive capacity needed to achieve higher economic growth over the medium term. The program will also strengthen fiscal management and social welfare policy.
After six years of growth, the Cook Islands economy has weakened since 2004 as a result of low public investment and a slowdown in economic reforms. The island group is heavily dependent on tourism with as many as 100,000 visitors a year, almost six times the resident population, the bank said.
The global crisis has heightened the economic deterioration with a slowdown in visitor arrivals in 2008, and revenue declines putting pressure on government spending programs, it added.
