Abstract:

Gross National Disposable Income (GNDI) is a better measure of economic performance than either Gross National Income or Gross Domestic Product, but is rarely used. The Pacific is the only region where using GNDI matters, and there it matters both a lot and increasingly. The use of GNDI highlights the economic uniqueness of the Pacific island countries and reveals a remarkable, world-leading Pacific growth spurt in the 2010s. The use of GNDI also provides a framework for understanding competing economic diagnoses and strategies for the region. For all these reasons, GNDI should be used routinely to headline any growth analysis of the Pacific. However, for this to be possible, some countries need to report balance of payments data more promptly.

This is a revised version of the Discussion Paper with the same number. It was first published on 3 July 2025 and revised on 17 and 26 November 2025.