Former Attorney-General Aiyaz Sayed-Khaiyum has voiced serious concerns about the direction of Fiji’s economy, citing government policies as exacerbating existing economic challenges. He claims that the country is facing an economic downturn marked by stalled key projects and an increasing exodus of Fijians, both on a temporary and permanent basis.
Sayed-Khaiyum highlighted a significant decline in domestic consumption alongside a worrying rise in unemployment rates, especially among the younger population. He criticized recent increases in Value Added Tax (VAT) and corporate taxes, arguing that these measures further load financial burdens onto citizens amid rising global inflation. Additionally, he took issue with the introduction of new school levies and the cutback on crucial subsidies that previously supported vulnerable groups in society.
The former Attorney-General expressed particular concern about the dearth of infrastructure projects, which he believes has contributed to growing public dissatisfaction and uncertainty. He noted the closing of garment factories as an example of the negative impact of the government’s economic strategies, with many manufacturers opting to relocate overseas. Furthermore, he critiqued what he perceives as a governmental distraction with political matters, such as politically charged investigations, at the expense of addressing pressing economic issues.
Sayed-Khaiyum issued a cautionary note regarding the future economic climate, warning that global economic contractions, especially in major economies like China, could adversely impact Fiji’s financial situation. Although the full impact of these global trends may not yet be apparent in Fiji, sectors such as tourism are reportedly already showing signs of struggle, indicating that challenges may soon emerge.
In contrast, Finance Minister and Deputy Prime Minister Professor Biman Prasad has refuted Sayed-Khaiyum’s assertions, stating that they lack factual support. He referenced recent figures from the Reserve Bank of Fiji, highlighting an upward revision of GDP growth from 2.8% to 3.8% and a drop in annual inflation to 1.4%, primarily due to decreasing food prices, which he claims signifies a strengthening economy.
Professor Prasad maintained confidence in the government’s direction, discussing rising job creation and an increased demand for labor as seen by a spike in work permit applications. He dismissed the former Attorney-General’s concerns as baseless and noted improvements in media freedom compared to prior administrations.
The ongoing dialogue between Sayed-Khaiyum and Prasad underscores a significant discourse regarding the economic health of Fiji. With differing viewpoints from key political figures, this debate could foster constructive dialogue and reform. Despite the ongoing challenges, there are signs of economic resilience, providing a hopeful foundation for potential growth and improvements if policymakers prioritize diversification and respond effectively to the socio-economic needs of their citizens.
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