Former Attorney-General Aiyaz Sayed-Khaiyum has raised significant concerns regarding the current state of Fiji’s economy, claiming that government policies have compounded existing economic challenges. He suggests that the country is experiencing an economic decline, with key projects stalled and an increasing number of Fijians leaving the nation, either temporarily or permanently.
Sayed-Khaiyum pointed out a notable reduction in domestic consumption and a substantial uptick in unemployment rates, particularly among youth. He also criticized the recent hikes in Value Added Tax (VAT) and corporate taxes, asserting that these measures further burden the population during a time of global inflation. Moreover, he highlighted the introduction of school levies and the reduction of critical subsidies that historically supported the vulnerable segments of society.
The lack of infrastructure projects has also drawn Sayed-Khaiyum’s ire, claiming it breeds public discontent and uncertainty. He noted the closure of garment factories as an indication of the adverse effects of the current government’s approach, with many manufacturers relocating their operations overseas. Additionally, he criticized the government’s supposed preoccupation with political issues, arguing that the focus on politically motivated investigations has diverted attention from pressing economic matters.
Forewarning about a potentially grim economic outlook, he indicated that global economic contraction, particularly in major economies like China, could worsen Fiji’s economic situation. Although the adverse effects of these conditions might not yet be fully felt in Fiji, sectors like tourism are already showing signs of distress, signaling that the repercussions may soon unfold.
In response to Sayed-Khaiyum’s claims, Finance Minister and Deputy Prime Minister Professor Biman Prasad rebuffed the allegations, asserting that they lack factual grounding. He referenced positive economic activity reflected in recent Reserve Bank of Fiji reports, which indicate an upward revision of GDP growth from 2.8% to 3.8% and a decline in annual inflation to 1.4%. This decrease in inflation, he explained, is primarily due to falling food prices, reflecting a strengthening economy.
Professor Prasad expressed confidence in the government’s direction, stating that the data demonstrate rising job creation and increased demand for labor, as indicated by a surge in work permit requests. He dismissed Sayed-Khaiyum’s concerns as unfounded and noted the advancements in media freedom compared to previous governmental regimes.
The back-and-forth between Sayed-Khaiyum and Prasad emphasizes a critical discourse regarding the health of Fiji’s economy, with various political leaders offering diverse perspectives and possibly serving as a catalyst for future dialogue and reform. While challenges persist, there are indications of economic resilience that provide a foundation for potential growth and improvement, particularly if policymakers heed calls for diversification and address the socio-economic needs of their citizens.
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