The Asian Development Bank said Pacific growth is set to moderate further this year with gains from major investment and infrastructure projects fading.

Going forward, in 2014, the region is likely to benefit from a rebound in the Papua New Guinea, with rolling out of new public infrastructure projects in smaller islands, the Asian Development Bank said in its latest Pacific Economic Monitor on Tuesday.

According to the latest estimate, regional growth will slow to 5.2 percent in 2013, before a mild pick up to 5.5 percent emerges in 2014. These estimates were weaker than the 7.3 percent regional growth seen in 2012 and a post global crisis high of 8.3 percent in 2011.

The tourism outlook for the region remains bright with strong arrivals from the main markets of Australia and New Zealand. This uptrend is likely to continue as the economies of the key source markets are expected to remain steady.

Although inflation slowed to 5.3 percent in 2012 on more stable food and fuel prices, it is set to rise to 6.1 percent this year and to 6.3 percent in 2014, the ADB estimated. The bank cited that muting effect of strong regional currencies on import prices dissipates in some nations, while public spending quickens.

RTTNews