The Asian Development Bank’s recent Pacific Economic Monitor has raised concerns about Fiji’s limited fiscal capacity to handle potential future disruptions. To promote steady economic growth and bolster economic resilience, the report urges the government to focus on increasing expenditure efficiency, improving budget execution, and advancing significant private investment initiatives.
Key recommendations include streamlining immigration and business application processes, which are essential for stimulating new economic ventures and supporting the private sector’s expansion in hotel capacity. While the current focus on fiscal consolidation is important to mitigate public debt, it is also vital to strengthen fiscal buffers and sustain macroeconomic stability, given Fiji’s vulnerability to economic shocks.
The report emphasizes that ongoing improvements in expenditure efficiency are critical, as Fiji’s ability to manage potential disturbances is limited. It calls for prioritizing growth-oriented spending and enhancing implementation capacity to foster resilient and inclusive growth while decreasing debt levels.
Furthermore, given the significant role of state-owned enterprises in the economy, improving regulatory and governance standards, enhancing their operational capabilities, and establishing a framework to limit state-owned enterprise guarantees could provide additional fiscal space for productive investments.