Republic of Fiji: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Fiji

International Monetary Fund

No 2024/159, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2024 Article IV Consultation highlights that Fiji’s economy has recovered strongly from the pandemic. The Fijian economy has recovered strongly from the pandemic. Real gross domestic product (GDP) rebounded by around 30 percent cumulatively in 2022–2023, surpassing pre-pandemic levels. Inflation has recently ticked up modestly largely due to a temporary effect of the hike in Value-Added Tax rates. Supported by the economic recovery, the fiscal deficit and debt-to-GDP ratios continued to decline but remain at elevated levels. The FY2024 (August–July) budget included significant revenue enhancing measures, partially offset by spending increases, which, on balance, are expected to reduce the fiscal deficit and debt ratios. The review recommends to continue rebuild fiscal buffers through a gradual consolidation, improves the targeting of social spending, and prioritize capital spending to support inclusive growth. Additionally, it is imperative to develop and operationalize an ambitious, comprehensive, and prioritized growth strategy to address key impediments to growth and enhance climate resilience.

Keywords: Fijian authorities; monetary policy stance; policy priority; staff recommendation; RBF approval requirement; Exchange restrictions; Global; Pacific Islands (search for similar items in EconPapers)
Pages: 76
Date: 2024-06-10
New Economics Papers: this item is included in nep-mac
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