Debt and inflation remain a concern: World Bank

February 28, 2023 4:40 pm

Debt and inflation remain key concerns for countries such as Fiji, as economic growth returns to the Pacific region.

This is according to the World Bank’s Lead Economist for the Pacific, David Gould.

He says Pacific nations including Fiji will need to consider reforms and policies and reduce future public debt risks to minimize the impacts of inflation and global economic uncertainty.

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Gould says Fiji was the strongest performing Pacific economy in 2022, buoyed by a rebounding tourism sector, following several years of negative growth due to the pandemic.

The World Bank’s Lead Economist for the Pacific, David Gould

He says Fiji is forecast to continue a stable growth trajectory and see inflation fall as low as two percent through 2023.

The economist says Fiji’s debt-to-GDP ratio climb rose to above 70 percent, which is among the highest in the region.

Gould says after three years of economic contraction, Fiji’s growth in 2022 is estimated to have climbed to 15 percent, yet the output is expected to remain below 2019 levels until 2024.