Ariel shot of Suva City. [File Photo]

The Fijian government and business houses have welcomed the assessment by Moody’s and the change in Fiji’s outlook from negative to stable, with our credit rating now at B1.

The B1 is one of several non-investment grade credit ratings used by Moody’s.

Fiji Commerce and Employers Federation Chief Executive, Kameli Batiweti says the government will be able to rake in more revenue as opposed to the expenditure, which has the ability to offset against the deficit seen in the high 80s a few months ago.

“Thankfully, Moody’s has forecast that until June 2023, when the current financial year ends, the number in the deficit will be reduced because economic activity has rebounded.”

Permanent Secretary for Economy, Shiri Gounder says this is in line with the strong rebound in the Fijian economy and the government’s fiscal consolidation efforts to put our debt on a downward path.

Gounder says the economy is expected to register double-digit growth this year, supported by a strong rebound in tourism, a pick-up in private sector confidence and strong consumption activity.

Economy Minister, Aiyaz Sayed-Khaiyum, in a tweet, highlighted that the upgraded outlook is great news. However, what matters most are the jobs that the government is creating.

Suva Retailers Association President Jitesh Patel says this new review also portrays a positive outlook on Fiji’s business environment.

“We can expect a lot more businesses to invest in our economy because it gives confidence to any business that wants to invest, and the biggest indicator is that our economy is getting better.”

According to Moody’s, the decision to change the outlook to stable reflects its assessment that risks to the credit profile is balanced.