World Bank

It expects the world economy to grow by just 1.7 percent this year - a sharp decrease from the 3 percent it predicted in June.

The report blames a number of factors stemming from Russia's invasion of Ukraine and the impact of the pandemic.

The effects of higher interest rates are picked out as the key challenge for policy makers to overcome.

World Bank president David Malpass said the downturn would be "broad-based" and growth in people's earnings in almost every part of the world was likely to "be slower than it was during the decade before Covid-19".

His comments on the subject, made during a call with reporters on World Bank economic forecasts, came as WTO negotiations over the proposed waiver resumed in Geneva.

Asked whether he backs a WTO vaccine IP waiver, which India, South Africa and other emerging market countries argue is needed to expand vaccine access, Malpass said: "We don't support that, for the reason that it would run the risk of reducing the innovation and the R&D in that sector."

The pandemic is compounding the forces of conflict and climate change, which were already slowing poverty reduction, the bank said.

By 2021, this could rise to as many as 150 million, it added.

Extreme poverty is defined as living on less than $1.90 (£1.50) a day.

The projected increase would be the first since 1998, when the Asian financial crisis shook the global economy.

Before the pandemic struck, the extreme poverty rate was expected to drop to 7.9% in 2020.

Its vice president for East Asia and the Pacific, Victoria Kwakwa, was in Tonga last week for talks.

Ms Kwakwa said the World Bank was working closely within Australia's Step Up and New Zealand's Pacific Reset programmes.

"We've been working on several things including supporting countries to strengthen their climate change resilience, working to support policy reforms to build their economic resilience and we're also working together on the connectivity agenda," Ms Kwakwa said.

"As you know, this region is very remote, even compared to other small island states."

The money would go towards repairs of the runway at Funafuti Airport, which was being damaged by water infiltration exacerbated by tidal and sea level impacts.

Several trial design solutions for the problem would be tried during this cyclone season.

The World Bank's Pacific country director, Michael Kerf, said it was imperative that Tuvalu's only international airport continues to function safely.

He said the project would help Tuvalu be resilient from the impacts of climate change.

The Australian newspaper reported that the bank's latest review of Asia-Pacific economies predicted Nauru's economy would go into recession over the next financial year.

The bank said growth remained "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 reopening of the centre in 2012 helped fuel economic growth at an average 20 per cent a year for three years, but the World Bank said growth had dropped to four per cent this year.

The document, 'Pacific Possible', has been launched at the Pacific Islands Forum in Samoa.

The Bank said the document had been three years in the making, and was the culmination of extensive consultations with Pacific Island and Pacific Rim governments, non-governmental organisations, academics and individuals across the region.

It has identified tourism, fisheries, the knowledge economy and labour mobility as key areas offering opportunities.

The report also mentions deep sea mining, yet advises caution.

Fiji welcomed this opportunity during the signing of the World Bank establishment agreement at the Prime Minister’s office Wednesday.

Prime Minister Voreqe Bainimarama says Fiji is honoured to host the World Bank group.

Bainimarama says Fiji’s relationship with the World Bank is growing and its presence at home will benefit not only Fiji but neighbouring countries.

At a regional energy summit in Samoa, the World Bank said it was detailing the potential for its online solar atlas, which gives interested parties the means to find where solar power potential is most concentrated.

The International Development Association, the bank's fund for the world's most in need countries, spent $US360 million in the Pacific in 2015 and this will increase this to $US900 million next year.

World Bank vice president for East Asia and the Pacific, Victoria Kwakwa announced the increase during a visit to Vanuatu over the weekend.

Ms Kwakwa says the bank’s entire Pacific island partners will benefit from the increase.