YAREN, 05 OCTOBER 2017 (THE AUSTRALIAN) — Nauru needs to find alternative sources of income as its receipts from processing asylum-seekers for Australia and its traditional phosphate exports wind down, the World Bank warns.
The bank’s latest review of Asia-Pacific economies predicts that Nauru will face recession over the next financial year.
“Growth remains dependent on the very uncertain outlook for the regional processing centre, which in turn is contingent on the extent to which asylum-seekers in Nauru are resettled in other countries,” the World Bank says.
The Australian government has said it will close the centres in Nauru and Manus Island this financial year.
“Nauru’s biggest challenge is to diversify its economy beyond reliance on the regional processing centre and phosphate mining, neither of which is a sustainable source of income in the longer term,’’ the World Bank says.
The reopening of the centre in 2012 helped fuel economic growth at an average 20 per cent a year over the next three years, but growth has dropped to 4 per cent this year.
Nauru has a population of 13,049 and an economy of about $150 million (US$117 million). pacnews [/restrict]