The Deputy Prime Minister and Minister for Finance of Fiji, Professor Biman Prasad, has expressed serious concerns about the threats to national stability emanating from ongoing trade tensions, volatile commodity markets, and geopolitical instability. Speaking at the Post-Budget Breakfast in Suva, he noted that the scale and speed of global economic disruptions have reached unprecedented levels in recent decades.
Despite the stability of current domestic economic indicators, Professor Prasad emphasized the importance of vigilance given the shifting international landscape. He cautioned that while Fiji has not yet fully felt the ramifications of the global trade war, the uncertainty surrounding unresolved issues could lead to anxiety about future economic conditions.
The Minister elaborated on how global sentiment significantly influences domestic economic behavior. If individuals anticipate worsening conditions, such as job losses or reduced income, their spending patterns and broader economic activities could be adversely affected.
Deputy Prime Minister Manoa Kamikamica added that the upcoming 2025-2026 budget is designed to foster growth and resilience, particularly for small economies like Fiji, which are heavily reliant on imports. He acknowledged the concerns about external factors impacting the economy but emphasized that the current budget contains measures aimed at counteracting these challenges. Increased spending in infrastructure and health sectors aims to provide a buffer during economic downturns while monitoring global developments closely.
In earlier discussions, Prasad had projected a growth rate of around 4% for Fiji in 2024, indicating that local economic growth was exceeding expectations despite external pressures. This optimistic outlook reflects the commitment of the government to maintain proactive fiscal strategies to navigate the complexities of the global economy while addressing community needs through transparent and inclusive governance.
The government aims to position Fiji on a path toward a sustainable and prosperous future, where responsive policies can mitigate the impact of global uncertainties on everyday life. By fostering community engagement and investment in critical sectors, Fiji is working to improve resilience and support for its citizens during these challenging times.
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