The Fiji Labour Party (FLP) has voiced concerns regarding the enthusiasm shown by Deputy Prime Minister and Minister for Finance Professor Biman Prasad about the national economy. Former Prime Minister and FLP Leader Mahendra Chaudhry pointed out that the revision of the economic growth estimate from 2.8 percent to 3.8 percent for the year 2024, largely attributed to a robust tourism sector, does not paint the complete picture. He asserts that the projected growth of three percent going forward signals a slow economic pace for Fiji, a developing nation.
Chaudhry emphasized that this growth forecast could be overly optimistic, particularly given the unpredictability of tourism performance linked to external economic conditions, fluctuating commodity prices, and international geopolitical issues, including conflicts. He also raised alarms about a potential decline in remittances and highlighted the critical shortage of skilled labor, which he believes will hinder economic progress.
Despite advocating for economic diversification during its time in opposition, Chaudhry criticized the current government coalition for failing to take significant steps in that direction, leaving Fiji heavily dependent on tourism. He warned that any negative developments affecting the tourism sector, such as damage to Fiji’s global reputation or a downturn in the world economy, could severely harm the nation’s financial health.
Chaudhry urged the public to recognize the struggles facing the economy, pointing out that the cost of living has surged to unprecedented levels following a VAT increase a year and a half ago, alongside a rising government debt.
FijiLive has reached out to the Deputy Prime Minister for his response to these claims, signaling a potential for dialogue on these pressing economic issues.
In summary, the FLP’s critique highlights key economic vulnerabilities that could impact Fiji’s stability. However, this also presents an opportunity for the government to address these challenges and work towards a more diversified and resilient economy for the future. Moving forward, it will be vital for all stakeholders to engage in proactive measures to enhance economic growth and stability.
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