[Photo: Pacific Islands Forum/FACEBOOK PAGE]

Pacific economies are facing worsening global instability. Leaders say rising conflict and energy pressures are deepening risks for small island states.

The warning came from Pacific Islands Forum Secretary General Baron Waqa. He spoke at the 2026 Forum Economic Ministers Meeting in Majuro.

Waqa said the global environment has deteriorated and pointed to the expansion of conflict in the Middle East. He said wider geopolitical tensions are adding further pressure.

He said these shocks are affecting economic and social stability across the Pacific. He said governments are already responding at the national level.

He said the regional meeting is a chance to strengthen resilience. He said it also supports better coordination among member countries.

Waqa thanked the Marshall Islands for hosting the meeting. He also thanked Finance Minister David Paul for the welcome to delegations.

He expressed condolences for the recent fire in Ebeye and said the Pacific Islands Forum stands with affected families and businesses.

He acknowledged emergency responders and communities for their quick action and said the incident highlights the need for stronger preparedness.

Waqa said the current situation was also an opportunity and that the region must prepare for future shocks.

He referred to energy discussions under the Manubada Declaration and said this includes exploring Papua New Guinea’s potential role in fuel supply.

He also highlighted the shift toward renewable energy while pointing to Palau’s 100 per cent renewable energy goal.

He mentioned COP31 preparations involving Australia, Türkiye and Pacific countries and said these efforts support the 1.5 degree climate target.

Waqa states that clean energy transition must be accelerated and it is now a regional priority.

He also referred to the Biketewa Declaration and how it has strengthened regional cooperation.

He said it brings together agencies, partners, the private sector and civil society. He said this shows a more inclusive approach.

Waqa said regional integration is already progressing and listed initiatives such as PRF, CBR, CFAMS and PFM coordination.

He said these are guided by the Pacific Roadmap for Economic Development.

Waqa said Pacific unity was a key strength, and collective action is essential in uncertain times.