Prime Minister Mark Brown highlighted Cook Islands’ challenge as a “nano market”, facing high costs and limited economies of scale, at the 58th Annual Meeting of the ADB Board of Governors in Milan, Italy.

The meeting from May 4-7 held under the theme “Sharing Experience, Building Tomorrow” is an opportunity for ADB shareholding governments to provide guidance to management and staff on administrative, financial and operational issues. Over the years, the annual meetings have become a premier forum for the discussion of economic and social development issues in Asia and the Pacific.

In a statement, PM Brown, who is also the country’s Finance Minister, said he had the honour of delivering the Cook Islands’ country statement, highlighting both the achievements and challenges as a Small Island Developing State (SIDS).

“The Cook Islands economy has rebounded strongly post-Covid, with real GDP growth of 14% and nominal GDP growth of 26.6%. This recovery reflects the resilience of our people and the strength of our tourism sector,” Brown said.

“But we are not without vulnerabilities, our economy remains highly exposed to external shocks, supply chain risks, and climate change. As a ‘nano-market’, we face high costs and limited economies of scale. That’s why we continue to advocate for tailored financial solutions, technical assistance, and access to climate financing that meets the realities of small island states.”

Brown said he also reiterated the Cook Islands’ support for the Regional Programmatic Approach on Climate Action (RPACA), and called on ADB to work with them in turning climate ambition into real, lasting resilience for Pacific nations.

“As we look ahead, our message is clear: The Cook Islands will continue to lead on regional initiatives like the Pacific Catastrophe Risk Insurance Company (PCRIC) and Pacific Resilience Facility (PRF), while working closely with partners like the ADB to secure a sustainable and prosperous future for our people.”

To date, ADB has committed 62 public sector loans, grants and technical assistance totalling $278 million to the Cook Islands, according to the regional development bank established in 1966 to promote social and economic development in Asia.

ADB has provided the largest proportion of lending to the Cook Islands, accounting for 81 per cent of the debt portfolio in 2024/25.

According to the Ministry of Finance and Economic Management’s 2024/25 Half-Year Economic and Fiscal Update released in December 2024, the total value of (gross) public debt is estimated to be $253.8 million. ADB has provided $205.4m of the country’s total borrowings.

Late last year, the Cook Islands signed a US$30 million loan agreement with ADB “to manage its debt and cash portfolios over the coming years”.

The loan was earmarked to support the Cook Islands Resilient Transformation Programme, which comprises a US$30 million policy-based concessional loan for subprogramme 1 in fiscal year 2025 (ending in June 2025) and a proposed $30 million policy-based concessional loan for subprogramme 2 in fiscal year 2027.