Fiji’s Debt Dilemma: What the Latest Figures Reveal

The Reserve Bank of Fiji reported that the country’s government debt reached $10.1 billion in June 2024, which is 73.3 percent of Fiji’s Gross Domestic Product (GDP). According to the central bank, domestic debt accounted for $6.6 billion, representing 48.3 percent of GDP, while external debt was recorded at $3.4 billion, or 25.3 percent of GDP. Additionally, the bank noted that foreign reserves were stable at $3.3 billion at the end of June, reflecting an increase from $1.6 billion in the first quarter, as the period saw inflows exceeding outflows. This improvement was attributed to government grants and robust tourism revenues, which supported total inflows during the June quarter, adequately offsetting outflows. The Reserve Bank of Fiji anticipates that foreign reserves will remain sufficient in the medium term.