A new Asian Development Bank publication forecasts most Pacific Island economies are expected to perform slightly better this year, compared to 2009.
"The Pacific Economic Monitor, a quarterly economic review of 14 Pacific Island countries and Timor-Leste, notes that Pacific islands are expected to expand by 0-point-5 percent overall this year."
Vanuatu is expected to remain the region's best performing economy, bolstered by the benefits of recent improvements to its economic policy.
But only Fiji and Palau are expected to contract in 2010, which is an improvement on five economies in the region last year.
Overall the growth rate for the region is expected to rise slightly this year to 3-point-7 percent, up from 2-point-4 percent in 2009.
The publication also highlights that 2010 provides an opportunity for resource-rich countries to refine how they manage large revenue flows from projects.
Governments still feeling the impact of the economic slowdown on tax revenue as fiscal pressures remain, are the Marshall Islands, Samoa, Solomon Islands, Fiji and Tonga.