Recession drives more into poverty in S Pacific

CAIRNS, Australia: The global recession has cut economic growth and government revenues in vulnerable South Pacific island nations, forcing more people into poverty, according to a report to the 16-member Pacific Islands Forum by the regional powers Australia and New Zealand published yesterday.

With some states running "unsustainable" budget deficits and struggling with "flat or declining growth" even before the downturn hit, the report warns that more will face destabilizing deficits if they fail to get spending under control.

The economic crisis will be a major focus of talks by leaders during the forum, which opened with a meeting of the region's seven smallest islands, stated yesterday. The meeting of the forum concludes on Friday.