Finance Minister Professor Biman Prasad has announced that the country’s economic fundamentals have significantly improved over the past two years, making the economy considerably stronger than when his administration took office. He pointed out some notable achievements, including an impressive economic growth rate of 7.5 percent for the year 2023, along with a revised growth projection of 3.8 percent for 2024, an increase from earlier estimates of 2.8 percent.
Professor Prasad highlighted the decline in inflation, which has fallen to 0.8 percent as of November, representing the lowest rate in 16 months. In addition, public debt has reduced to 75.4 percent of GDP, a considerable drop from 90.7 percent recorded in 2021-2022. The minister attributed this positive economic climate to initiatives like raising the minimum wage and increasing infrastructure spending.
He also recognized the vital role of the tourism sector in driving the recovery, noting a 6.5 percent rise in visitor numbers between January and October this year.
However, Opposition MP Premila Kumar raised concerns about whether these economic gains are genuinely benefiting the everyday lives of citizens. While she acknowledged the encouraging economic indicators, she challenged the assertion that growth translates into tangible improvements for Fijians. She pointed out the persistent high cost of living, which continues to strain many families, and the exodus of skilled workers amid ongoing challenges faced by small businesses.
Ms. Kumar emphasized the importance of making essential goods more affordable and supporting small enterprises, which she described as “the backbone of our economy.” She urged the government to take decisive action to ensure that the benefits of economic recovery are more evenly distributed and to implement stronger strategies to retain skilled professionals while tackling household expenses.
Overall, while Minister Prasad’s announcements reflect positive growth and stability, the concerns raised by Ms. Kumar remind us that economic indicators should translate into real improvements in the quality of life for all citizens. Continuing to engage with these challenges will be crucial for sustainable economic development that benefits everyone.
Commentary: It’s vital for policymakers to ensure that economic growth is inclusive. Addressing issues like cost of living and supporting small businesses will resonate positively with the public and reinforce the government’s commitment to sustainable progress.
Summary:
Finance Minister Professor Biman Prasad announced significant economic growth with a 7.5 percent increase in 2023 and a 3.8 percent projection for 2024, alongside reduced inflation and public debt. Opposition MP Premila Kumar expressed concerns about the tangible benefits of this growth for everyday Fijians, highlighting the struggles with living costs and small business challenges. Both perspectives underscore the need for inclusive strategies in economic policy.
Leave a comment