SYDNEY - The World Bank has urged the largest Pacific Island nation, Papua New Guinea, to address a "human capital crisis" and invest more in educating children, who suffer high rates of stunted growth and illiteracy, as a way to boost economic growth and security.

An annual economic update for Papua New Guinea (PNG) released on Thursday shows economic growth was a modest 2.7% last year, half the previous year, because of delays in the reopening of the Porgera gold mine and lower liquefied natural gas production.