[File Photo]

Fiji’s economy is rebounding strongly this year and International Monetary Fund Deputy Managing Director, Bo Li says this is an encouraging development for a developing country.

In his meeting with Reserve Bank Governor, Ariff Ali, the IMF Deputy Director says Fiji like all other nation will have to strategically deal with global inflation.

Li says the rise in energy and food prices will affect ordinary Fijians if proper policies are not implemented.

“A combination policy is needed to deal with this kind of situation including fiscal policy and other public policy. A lot of vulnerable people are affected by this high price in food and energy. In this kind of situation, we think a targeted fiscal policy that will support the vulnerable group, we think it’s important.”

Li adds the fiscal policy needs to be designed properly to ensure it targets the right group without creating additional pressure on government debt.

He adds the government will have to carefully consider balancing the two extremes.