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Fiji’s Debt Hits $10.1 Billion: What It Means for the Economy?

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The Reserve Bank of Fiji has reported that the country’s government debt reached $10.1 billion in June 2024, representing 73.3 percent of Fiji’s Gross Domestic Product (GDP). The bank indicated that domestic debt accounted for $6.6 billion, or 48.3 percent of GDP, while external debt was reported at $3.4 billion, which is 25.3 percent of GDP.

Additionally, the Central Bank announced that foreign reserves held steady at $3.3 billion at the end of June. This marks an improvement from $1.6 billion at the beginning of the year, as the inflows exceeded outflows during this timeframe.

Support from government grants and robust tourism receipts contributed to total inflows for the June quarter, sufficiently countering the total outflow. The Reserve Bank of Fiji noted that foreign reserves are expected to remain adequate in the medium term.

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