Fiji’s Prime Minister Sitiveni Rabuka has addressed the challenges facing the nation’s economy in Parliament, emphasizing the government’s limited control over supply chains and inflation, which he attributes largely to external influences. He pointed out that the nation’s significant reliance on imports, particularly oil for transportation and power generation, has led to what he termed “imported inflation.”
Despite these challenges, Rabuka highlighted that Fiji’s domestic economy has rebounded to pre-pandemic levels, with a growth forecast for 2024 revised upward to 3.8 percent, driven by renewed confidence and a remarkable recovery in the tourism sector. The services industry continues to be the focal point of economic growth, with a forecast of 3.4 percent growth in 2025 as well.
In a call for improvement, Rabuka stated that while the government can devise policies to better manage the economy, it remains at the mercy of external factors. He emphasized the importance of fostering a conducive business environment, implementing economic reforms, ensuring political stability, and crafting well-coordinated macroeconomic policies to sustain higher growth.
This approach resonates with previous remarks made by President Ratu Naiqama Lalabalavu and Finance Minister Biman Prasad, who have underscored the necessity for economic diversification and resilience against external shocks. They have called for significant structural reforms and highlighted the pressing need to improve the agricultural and tourism sectors alongside advancing digital transformation.
The ongoing cooperation between the government, private sector, and civil society is crucial in navigating these economic hurdles and paving the way for a sustainable and equitable future for all citizens. The commitment to infrastructural development and support for micro, small, and medium enterprises (MSMEs) further presents an opportunity to boost local production and enhance economic self-sufficiency.
Overall, while Fiji faces formidable external pressures, the reaffirmation of strong economic fundamentals and proactive measures signals a hopeful outlook for the nation. The collective efforts to address vulnerabilities combined with strategic investments could enhance living standards, creating a more resilient and prosperous Fiji.
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