Fiji’s economy is showing impressive resilience, with Gross Domestic Product (GDP) growth estimated at around four percent for the previous year. Finance Minister and Deputy Prime Minister Professor Biman Prasad reported that the government’s revenue for the 2024–2025 budget year exceeded forecasts by over $150 million. He indicated that with ongoing reviews, it could potentially rise to nearly $200 million more than initially anticipated.
In a significant achievement, over 98 percent of the projected revenue was collected in the first budget period. Professor Prasad’s observations highlighted the effective fiscal management strategies in budgeting, spending, and borrowing that have contributed to this economic stability and bolstered confidence in the nation’s financial health.
This positive economic trajectory follows a robust performance earlier in the fiscal year, where the government recorded total revenue collections of over $1 billion against total expenditures of approximately $956.3 million, generating a noteworthy net surplus of $131.2 million, or 0.9 percent of the country’s GDP. This stands in stark contrast to the previous fiscal year, which witnessed a deficit of $21.5 million.
Moreover, the government’s commitment to addressing rising inflation—which has exerted pressure on household expenses—has been underscored. Initiatives aimed at alleviating the financial burden on citizens are underway, as evidenced by the inflation rate decreasing for four consecutive months, landing at 0.8 percent in November. This decline is significant when compared to last year’s rate of 5.8 percent for the same period.
Overall, the developments in Fiji’s economic landscape depict a hopeful outlook. The government’s proactive fiscal policies and strategic oversight are paving the way for potentially sustained growth and improved living conditions for Fijians, indicating a positive shift towards greater economic resilience and stability.
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