The Fiji Labour Party has expressed concerns regarding the optimism shown by Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, about the country’s economy. In a statement, former Prime Minister and FLP Leader Mahendra Chaudhry pointed out that although economic growth projections have been revised upward from 2.8 percent to 3.8 percent for 2024—largely due to a robust tourism sector—the forecast for subsequent years falls back to a more modest three percent.
Chaudhry argues that this figure indicates the DPM’s enthusiasm about revenue generation and investor confidence might not be substantiated by the actual economic data, as a three percent growth rate is considered sluggish for a developing nation like Fiji. He warned that this forecast could be overly optimistic, hinges on the performance of the tourism sector, which is susceptible to fluctuations in foreign economies, rising commodity prices, and geopolitical uncertainties, including conflicts.
Furthermore, he expressed worries that remittances, a significant source of income for many Fijians, may decline soon. Chaudhry noted the ongoing skilled labor shortage, which he believes will continue to hinder economic development.
Despite advocating for economic diversification while in opposition, Chaudhry critiqued the current government’s lack of action on this front, emphasizing Fiji’s continued heavy dependence on tourism. He warned that any downturn in tourism, such as damage to Fiji’s international reputation or a global recession, could have catastrophic effects on the economy.
Chaudhry called for transparency from the government regarding the current economic challenges, highlighting the skyrocketing cost of living since the VAT increase and the rising government debt.
In response to these criticisms, FijiLive has sought comments from the Deputy Prime Minister and Minister for Finance.
This situation presents an opportunity for Fiji to reconsider its economic strategies and work towards diversification to create a more resilient economy. The focus on innovation and enhancing workforce skills could be pivotal in navigating these challenges and fostering sustainable growth for the future.
Leave a comment