IEOM reports contrasting 2025 economic outlook for French Pacific territories

The Institut d’émission d’Outre‑mer (IEOM) released its 2025 activity report for the French Pacific overseas collectivities—New Caledonia, French Polynesia and Wallis‑et‑Futuna. Inflation in the CFP zone fell to 0.5 % in December 2025 after a peak of 1.6 % the previous year, but price trends diverged: food prices fell in New Caledonia and rose in Polynesia, while energy costs increased modestly across the three territories.

Credit activity showed mixed signals. Overall loan balances to enterprises and households continued to contract (‑2.8 % and ‑1.3 % respectively), whereas credit to public administrations rose sharply by 30.1 %. Investment loans grew by 13 % and now represent 39 % of healthy loan stock, while housing loans declined. Cash‑handling volumes at IEOM agencies increased, with New Caledonia and Polynesia accounting for roughly half of all bill transactions each.

Business failures rose slightly, with 521 court judgments in 2025, a 1.6 % increase overall. New Caledonia saw a modest rise in failures despite aid measures, while Polynesia recorded a 18.6 % drop. The report highlights that the 2024 shock events—cyclones, unrest in New Caledonia and social tensions in other territories—have given way to an improving economic environment in 2025, though international price pressures could reignite inflation risk.