Tongan PM warns of global uncertainty as FEMM endorses three key regional initiatives
27 March 2025. In a clear warning to his fellow Pacific Finance Ministers, Tongan Prime Minister and Forum Chair Dr ʻAisake Eke highlighted on Wednesday the rising global uncertainty, fuelled in part by shifting U.S policies under the new Trump administration.
As the Pacific islands grapple with economic recovery and climate challenges, the Prime Minister stressed that the stakes have never been higher for the region.
“We are meeting at a time of unprecedented challenges to the global economy. With the new U.S Administration, we have a new sheriff in town and his policies have implications for the World and our region,” Dr Eke said at the opening of the Special Forum Economic Ministers Meeting (FEMM) in Nuku’alofa.
“Already we are witnessing accelerated levels of uncertainty across the world. This, I believe, will only intensify in the months and possibly years ahead,” he said.
The ministers and senior officials from across the Pacific gathered in Tonga to endorse three critical regional initiatives: the Pacific Roadmap for Economic Development (PRED), the Climate Finance Access and Mobilisation Strategy (CFAMS), and the Pacific Resilience Facility (PRF). These initiatives are designed to help the Pacific nations confront both economic volatility and the growing threats of climate change.
Prime Minister Eke pointed to the fragile state of the region’s economic recovery from the COVID-19 pandemic. While 2025 growth is expected to surpass pre-pandemic levels, much of the Pacific’s recovery is still at risk.
“Most of our small economies have been recovering from the impacts of the COVID-19 pandemic in the last three (3) years,” Dr Eke said.
“This year 2025, we expect most of our countries to return to pre-COVID growth levels. According to IMF projections, real GDP growth for Pacific Island economies in 2025 is expected to be 4.0 percent, slightly higher than the 3.3 percent forecast for 2024.”
However, this positive outlook is tempered by serious threats from global trade disruptions, geopolitical tensions, and the ever-present risk of climate-related disasters.
“The growth prospects are, however, threatened by heightened uncertainty about global trade policies, rising conflicts, frequent and severe climate change-related disasters and fragmented global economic landscape. These factors present further downside risks that could seriously threaten our economic recovery and set us further backwards,” Dr Eke emphasised.
The region’s vulnerability was starkly illustrated by the devastating effects of natural disaster. Dr Eke reflected on the ongoing recovery from the catastrophic Hunga-Tonga-Hunga Ha’apai volcanic eruption in 2022 and the recent 7.3 magnitude earthquake in Vanuatu.
“Three years on and we here in Tonga, are still recovering from that disaster. The rebuilding process from that disaster will take many years to complete,” he said.
Against this backdrop of uncertainty and resilience, the three initiatives presented at the meeting took on even greater significance.
The Pacific Roadmap for Economic Development (PRED), designed to deepen regional cooperation and integration, is seen as key to the Pacific’s long-term stability and prosperity.
Dr Eke called for its endorsement: “The recommendation before us, Ministers, Senior Finance and Economic Officials, is to endorse the revised draft PRED. This will enable the Secretariat to implement the Roadmap to strengthen regional economic integration and collaboration, foster deeper ties, and promote more vibrant Pacific economies.”
Equally critical is the Pacific Resilience Facility (PRF), which aims to establish a Pacific-led financing mechanism for climate resilience and disaster preparedness. “We need to build and strengthen our communities to be resilient against the impacts of climate change and disasters,” Dr Eke stressed. “One single event can easily wipe out decades of development gains in a matter of hours.”
The meeting also focused on the CFAMS, a strategy designed to mobilise the financing needed to combat climate change in the region. As the Prime Minister pointed out, the Pacific faces significant challenges in accessing the climate financing necessary for resilient development. The CFAMS, he explained, would play a critical role in addressing these financial gaps and securing the region’s future.
“The odds are not in our favour,” Dr Eke acknowledged. “We have to be bold and innovate to protect our small economies. We need to seize opportunities whenever and wherever they arise.”
He stressed the importance of diversifying trade relationships, embracing new technologies, and forging new partnerships to ensure economic resilience.
“By working together, we will create a stronger, resilient and successful Blue Pacific Continent that will benefit not only our current generation but our future generation as well,” Dr Eke said.
Meanwhile, the Special Economic Ministers Meeting (FEMM) late Wednesday endorsed the three key regional initiatives:
– The Pacific Roadmap for Economic Development (PRED): A revised version focusing on existing and feasible regional collective actions, aligning with the 2050 Strategy.
– The Climate Finance Access & Mobilisation Strategy (CFAMS): Addressing the gap in climate finance resources needed for the region to combat climate change.
– Pacific Resilience Facility (PRF): Progressing towards a Pacific-owned community resilience financing facility, with a treaty to be presented for ratification by Forum Leaders in September.
The Forum Economic Ministers Meeting (FEMM) proper will be held in August, 2025.
- IP
