The Fiji Labour Party has voiced significant criticism towards Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, suggesting that his optimistic portrayal of the economy does not align with the actual economic indicators. Former Prime Minister and Fiji Labour Party Leader Mahendra Chaudhry emphasized that although the economic growth projection for 2024 was updated from 2.8 percent to 3.8 percent, largely attributed to the successful tourism sector, the longer-term growth forecast is set at a modest 3 percent.
Chaudhry warns that this forecast might be overly optimistic, especially considering the unpredictable nature of the tourism industry, which is heavily influenced by external economic conditions, fluctuating commodity prices, and geopolitical risks. He raised concerns that remittances may also decline in the near future and reiterated that the lack of skilled labor is likely to hinder economic growth.
Chaudhry criticized the current government’s lack of initiatives to diversify Fiji’s economy, noting that the nation remains overly dependent on tourism. He cautioned that any adverse developments in tourism, whether from reputational damage or a global economic downturn, could severely impact the nation’s economic stability.
Furthermore, he pointed out the pressing issue of rising living costs and increasing government debt since the Value Added Tax (VAT) was raised 18 months ago, urging citizens to recognize the struggles within the economy.
The publication has sought comments from the Deputy Prime Minister regarding these claims.
In summary, the Labour Party’s criticism underscores the concerns regarding the sustainability of Fiji’s economic growth, emphasizing the need for diversification beyond tourism to foster a resilient economy. This situation presents an opportunity for the government to reassess its strategies and invest in new sectors, potentially leading to a more robust and versatile economy in the future.
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