The Fijian government is actively monitoring international events that may influence global oil prices, particularly amid rising geopolitical tensions and ongoing conflicts worldwide. Minister of Finance Esrom Immanuel highlighted that Fiji has so far benefitted from stable fuel prices, despite fluctuations in the global market, like the surge in US oil prices triggered by recent attacks in Venezuela.
Immanuel stated, “We will continue to closely assess global conditions and their potential implications on fuel prices and the Fijian economy.” He assured that the government is prepared to react promptly and responsibly to uphold economic stability and safeguard vulnerable households, although he noted it is currently too early for definitive action.
In support of this outlook, National Federation Party leader and former finance minister Professor Biman Prasad described Fiji’s economy as “strong” and capable of weathering potential financial shocks linked to rising global conflicts. He praised the government’s strategic fiscal policies, which he argues have created a safety net against supply chain disturbances.
Prasad remarked that there is no immediate cause for alarm and that maintaining confidence and growth will enable Fiji to navigate any adverse effects on its economy. He pointed out that the upcoming 2025-26 Budget has been tailored to address potential fallout from significant global events. This “anticipatory and slightly expansionary budget” is expected to include robust social and economic measures to mitigate short- to medium-term impacts from global disruptions.
Moreover, Prasad referred to data from the Fiji Bureau of Statistics and the Reserve Bank of Fiji, which indicate a steady decline in inflation over the past two years. He noted that tax reforms and enhanced compliance have enabled the government to boost revenue and decrease the debt-to-GDP ratio to below 80 percent.
Looking ahead, the government’s national development plan aims for Fiji to transition into a high-income nation by 2050, necessitating an annual growth rate of four to five percent. Prasad stressed that achieving this objective demands more than a mere “business-as-usual approach,” with infrastructure development initiatives already launching in renewable energy, health, and education sectors.
In conclusion, he urged that there is no need for panic over global conflicts, emphasizing the importance of continuing to support the private sector’s momentum in driving Fiji’s economic growth. This balanced perspective on potential challenges highlights the resilience of Fiji’s economy and the proactive measures being taken to ensure its stability and growth in the face of global uncertainties.
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