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Illustration of Hot air, Chaudhry says of Prasad’s economy

Fiji’s Economic Optimism: Reality Check or Rhetoric?

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The Fiji Labour Party has taken aim at Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, criticizing the disparity between his optimistic portrayal of the economy and the actual statistical data. In a recent statement, former Prime Minister and FLP Leader Mahendra Chaudhry highlighted that while the economic growth projection for 2024 has been revised upward from 2.8 percent to 3.8 percent, primarily due to a robust tourism sector, the anticipated growth rate for the future sits at a modest three percent.

Chaudhry expressed concern that this figure indicates a slow growth trajectory for a developing nation like Fiji. He suggested that the Deputy Prime Minister’s claims of increased revenue collection and heightened investor confidence may be overly optimistic, noting that a three percent growth rate might even reflect an overestimation given the volatility of global tourism, fluctuating commodity prices, and geopolitical tensions such as conflicts and wars.

He raised additional worries about a potential decline in remittances and emphasized the ongoing issues related to a shortage of skilled labor, which he believes will further hinder economic progress. Despite previously advocating for economic diversification while in opposition, Chaudhry criticized the current government coalition for making little headway in reducing Fiji’s heavy reliance on tourism.

Touching on potential risks, he cautioned that any adverse effects on the tourism sector—whether from damaging the nation’s reputation or the impacts of a global economic recession—could have dire consequences for Fiji’s economy. Chaudhry concluded by stating that the public should be made aware of the economic struggles they face, particularly as the cost of living has soared to unprecedented levels following a VAT increase a year and a half ago, alongside rising government debt.

It is important to recognize that while challenges lie ahead, constructive criticism can serve as a catalyst for meaningful dialogue and action. Engaging in open discussions about economic performance and future strategies can pave the way for reform and a more resilient economy for Fiji.

In summary, the Fiji Labour Party has expressed significant concerns over the government’s economic performance outlook, highlighting the reliance on tourism, the risks of external economic factors, and the need for skilled labor to ensure sustainable growth. The call for transparency about the economic challenges faced by citizens is a crucial step in fostering a proactive approach to economic policy.


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