IMF forecasts three percent growth for Fiji

March 12, 2024 4:33 pm

[File Photo]

The International Monetary Fund is projecting three percent economic growth for Fiji this year.

IMF Mission Chief for Fiji, Asia and the Pacific, Marshall Mills highlighted this saying that Fiji’s post-pandemic economic rebound has been strong and growth is now returning to its historical trend.

Mills stresses that Fiji’s fiscal position and debt-to-GDP ratio have continued to improve significantly.

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“We found that the Fijian economy performed well last year with eight percent growth. We projected it will continue to grow this year this year returning to its normal trend of around three percent growth.”

Mills adds that by the end of the year, Fiji should anticipate lower inflation.

“Inflation is moderating currently after having ticked up temporarily to above five percent last year and this was due to the temporary effect of the VAT increase. We expect that effect to dissipate completely by midyear this year and inflation to be around three percent at the end of this year.”

Mills further says that Fiji needs to continue a gradual reduction in the deficit and its fiscal consolidation in order to promote strong growth.

The government’s focus on financial empowerment programs is expected to further support Fiji’s economic growth and stability in the coming year.