The Fiji Labour Party has expressed its concerns regarding the Deputy Prime Minister and Finance Minister, Professor Biman Prasad, suggesting that his positive outlook on the economy isn’t supported by the current economic data. Former Prime Minister and current FLP Leader Mahendra Chaudhry addressed this issue, noting that while the economic growth forecast for 2024 has been revised upward from 2.8 percent to 3.8 percent due to a robust tourism sector, the projected growth for subsequent years is set at a mere three percent.
Chaudhry pointed out that this growth figure is concerning, as three percent indicates slow development for a country like Fiji that is classified as a developing nation. He warned that this forecast could be overly optimistic, particularly depending on the performance of tourism, which is susceptible to fluctuations caused by global economic conditions, rising commodity prices, and geopolitical tensions.
Additionally, he raised alarms over the potential decrease in remittances and highlighted a persistent shortage of skilled labor, which could further hinder economic progress. Chaudhry criticized the current government coalition for failing to diversify the economy, leading Fiji to remain heavily dependent on tourism. He warned that any negative developments in this sector, such as damage to Fiji’s reputation or a global recession, could be detrimental.
Furthermore, he emphasized the urgency for the public to understand the challenges the economy faces, including the rising cost of living attributed to a VAT increase and escalating government debt.
This situation presents an opportunity for the Fijian government to reassess its economic strategies and work more vigorously towards diversification. Prioritizing innovation and investment in sectors beyond tourism can foster resilience and sustainable growth for the economy. Hopefully, this criticism will initiate meaningful discussions and actions towards a more balanced economic future for Fiji.
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