The Fiji Labour Party has expressed concern regarding the Deputy Prime Minister and Minister for Finance, Professor Biman Prasad’s, optimistic outlook on the country’s economy, questioning its alignment with economic data. Former Prime Minister and current FLP Leader, Mahendra Chaudhry, noted that while the economic growth estimate for 2024 has been adjusted from 2.8 percent to 3.8 percent largely due to a boisterous tourism sector, the long-term forecast indicates a more modest growth rate of three percent.
Chaudhry cautioned that a growth rate of three percent is inadequate for a developing nation like Fiji and could even be an overestimation influenced by external factors such as overseas economic conditions, rising commodity prices, and geopolitical tensions. He expressed concerns over potential declines in remittances and emphasized that the ongoing shortage of skilled labor could hinder economic progress.
The former Prime Minister pointed out that despite previously advocating for economic diversification, the current Coalition government has made little progress in reducing reliance on tourism. He warned that any downturn in tourism could have severe repercussions for Fiji’s economy.
Additionally, Chaudhry highlighted the rising cost of living, exacerbated by an increase in Value Added Tax (VAT) and escalating government debt, urging the public to be aware of the struggles facing the economy. The media outlet FijiLive has sought comments from the Deputy Prime Minister and Minister for Finance on these issues.
In summary, while there are glimmers of growth in Fiji’s tourism sector, significant challenges remain that could impact the overall economy. It’s crucial for the government to address these concerns and explore opportunities for diversification to build a more resilient economic future for the nation. Optimistically, there is still time for the government to pivot toward strategies that can bolster Fiji’s economic foundation and improve the quality of life for its citizens.
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