Fiji has recorded nine straight years of economic growth.
This was highlighted in the International Monetary Fund Annual Report on the Fijian Economy that has been welcomed by the Minister of Economy, Aiyaz Sayed-Khaiyum.
The report states that Fiji's debt as a percentage of GDP decreased from 53% in 2006 to 47% in 2016.
However, Sayed-Khaiyum says the trend was disrupted by the severe devastation of tropical cyclones Winston, Gita, Keni and Josie, which required large scale public spending to address.
Sayed-Khaiyum says that this was a necessary short term expenditure of around $500 million from 2016‑2018 and a major factor behind the increase in government’s debt to GDP percentage to 50% in 2018 adding that if it were not for the impacts of these severe natural disasters, our debt levels were projected to continue decreasing.
He says to generate private sector investment and activity they will maintain the low tax regime, which remains the most attractive in the region, as well as a stable interest rate and policy environment adding that tax compliance will continue to be improved which will close additional loopholes in enforcement.
Sayed-Khaiyum says that efforts to diversify the economic mix would improve to ensure the sustainability of our economic growth and development.
