Better information technologies and transport infrastructure are seen as key in the Pacific to increase economic opportunities and better access to goods and services.
Photo: Asian Development Bank
According to the Asian Development Bank, a drop in the Pacific's growth is due to the slowdown in Papua New Guinea.
ADB's Director General for Pacific Carmela Locsin said improved information communication technology is no longer a luxury, but a necessity.
Recovery in the larger economies is expected to see regional growth at 3.3% in 2018.
However, the price prospects for Pacific exports are mixed and inbound tourism may slow down.
The ADB Pacific Department notes the Pacific countries' remoteness is a fundamental constraint to economic development.
In the report, the ADB estimates that 75% of Pacific economies will be connected to submarine cables in the next 2-3 years.
The ADB is working with the Cook Islands, Kiribati, Nauru, Palau, Samoa, and Tonga to help develop submarine cable projects.