Fiji’s debt to GDP percentage was disrupted by the severe devastation of tropical cyclones Winston, Gita, Keni and Josie which required large scale public spending to address.
This was highlighted by the Minister for Economy, Aiyaz Sayed-Khaiyum as he welcomed the International Monetary Fund 2018 Annual Report on the Fijian Economy.
The report states that Fiji's debt as a percentage of GDP decreased from 53% in 2006 to 47% in 2016.
Sayed-Khaiyum says that a major factor behind the increase in government’s debt to GDP percentage to 50% in 2018 was the expenditure of around $500 million from 2016 to 2018 to address the damages from tropical cyclones.
He says that if it were not for the impacts of these severe natural disasters, our debt levels were projected to continue decreasing.
The Economy Minister says that 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.
He adds 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 Fiji’s economic growth and development.
The report also states that Fiji has recorded nine straight years of economic growth.
