Good progress has been made over the past year to address important challenges, said the International Monetary Fund in its concluding statement on a mission to Fiji.
The IMF team led by Alasdair Scott held discussions with the Fijian authorities and other stakeholders in Suva and Nadi from March 12 to 25, 2025.
“Good progress has been made over the past year to address important challenges,” said Mr Scott.
“Fiscal consolidation has advanced, while on the structural front, delays in the approvals of worker permits have fallen.”
“But public debt remains high.”
“In addition, the current account deficit is projected to stabilize over the medium term at around 7 percent of GDP; with financial inflows projected to remain lower than before the pandemic.”
Mr Scott added risks going forward are “tilted to the downside.”
“The global economy could suffer from increased trade frictions, disruptions to FDI, and higher global inflation.”
“The direct effects on Fiji from higher tariffs on other countries are likely to be small.”
“But there is potential for a slowdown in external demand, especially in terms of tourist arrivals, goods exports, and remittances.”
“On the upside, greater structural reform momentum–particularly to modernize infrastructure, enhance human capital, and create a business-friendly environment—would raise potential growth, strengthen public finances, and improve external sustainability.”
