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flag Report highlights Pacific nations' rising debt from infrastructure loans, signaling inadequate development aid.

flag A new report from the Lowy Institute highlights rising debt concerns in Pacific development funding, with loans now financing 60% of infrastructure projects and making up 41% of total official development finance in 2022. flag Despite overall finance flows being 19% above pre-pandemic levels, funding to the Pacific dropped by 18% due to reduced Covid-19 support. flag The report warns that development aid is becoming inadequate due to regional needs, economic fragility, and geopolitical pressures, with Australia as the top donor and China regaining second place.

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