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Our Debt To GDP Ratio Declines To 50%

The Fijian debt to GDP ratio has declined from around 55 per cent to 50 per cent in 2014, says deputy Governor of the Reserve Bank of Fiji, Ariff Ali.
19 May 2015 09:38
Our Debt To GDP Ratio Declines To 50%
Deputy Governor, Ariff Ali.

The Fijian debt to GDP ratio has declined from around 55 per cent to 50 per cent in 2014, says deputy Governor of the Reserve Bank of Fiji, Ariff Ali.

Mr Ali said this reflects an improvement in Government’s debt position.

“The reduction reflects firstly, that Government has been prudent in fiscal management,” he said.

“Secondly, it also means that Fiji’s economy is doing much better i.e. growing faster than the growth in the stock of debt.”

Mr Ali stressed Fiji’s debt is expected to fall further in 2015 as the fiscal deficit is projected at 2.5 per cent while the economy is forecast to grow by 4.3 per cent.

“A lower debt/GDP ratio means it allows Government to continue to focus on spending on infrastructure, education, health etc,” he said.

The Fijian economy is projected to grow for the sixth consecutive year and for the third straight year above four per cent in 2015.

Mr Ali said this compares favourably against our historical growth of around two per cent since independence.

“Inflation has fallen and as at the end of April, it was 1.4 per cent assisted by lower fuel prices announced last month,” he said.

“Foreign reserves remain strong. It is currently $1.9 billion compared with $1.8 billion at the end of 2014.”

Feedback:  rachnal@fijisun.com.fj

 




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