The combination of socio-economic shocks over the past few years has also affected socio-economic progress in small states. Geopolitical tensions in Europe and supply chain disruptions have had impacts on food security, given the reliance of small states on food imports. This has worsened progress on poverty indicators.
Climate change shocks continue to affect socio-economic progress in the health and education sectors, by damaging social infrastructure, affecting school attendance and promoting the spread of communicable diseases.
Following the resumption of normal activity post-COVID, small states have been on a path to economic recovery, largely sustained by a rebound in tourism, which in many small states has reached pre-pandemic levels. However, ongoing shocks – ranging from geopolitical to climatic – have marred this recovery. As such, small states are projected to grow at 3.3 per cent in 2025, a contraction from the 3.7 per cent growth in 2024, as a result of persistent economic challenges.
The Small States Economic Review and Basic Statistics is a biannual flagship report that focuses on recent socio-economic developments in the 33 Commonwealth Small States. This 22nd edition of the report centres on the theme of ‘Building Resilience in the Commonwealth of Small States’.
The report is divided into two sections. Part 1 provides an overview of recent economic and socio-economic trends in small states and delves into the thematic issues affecting these small states. Part 2 covers the special topic of sustainable and regenerative tourism for resilience in small states.
