SUNBIZ

IMF Optimistic Of 2.5% Growth Forecast For Fiji

The International Monetary Fund remains optimistic about Fiji’s economic conditions and has revised its GDP growth projections to around 2.5 per cent this year. The forecast has been revised down
12 May 2016 15:02
IMF Optimistic Of 2.5% Growth Forecast For Fiji
IMF Resident Representative to the Pacific Islands, Tubagus Feridhanusetyawan. Photo: AATIKA PATEL

The International Monetary Fund remains optimistic about Fiji’s economic conditions and has revised its GDP growth projections to around 2.5 per cent this year.

The forecast has been revised down by only about one percentage point following the impact from Tropical Cyclone Winston and the following floods. It is also higher than the Reserve Bank of Fiji’s forecast of 2.2 per cent.

IMF Resident Representative to the Pacific, Tubagus Feridhanusetyawan, highlighted this yesterday while presenting on the regional economic outlook for Asia and the Pacific.

Mr Feridhanusetyawan stressed reconstruction activities and additional fiscal measures should provide some offset and contribute to a rebound next year.

“The current account and fiscal balances are expected to worsen slightly in the next two years compared to previous estimates,” he said.

“Despite some pressures on external and fiscal balances, international reserves coverage is expected to remain adequate and public external debt is low.”

Mr Feridhanusetyawan suggested medium term fiscal consolidation by mobilising revenue and restraining current spending remains critical to build fiscal buffers.

Regional risks

The survey report which has just been launched, emphasised that natural disasters are a major perennial risk to most Asian and Pacific economies.

It said because of the poorer infrastructure and geographical susceptibility to natural disasters and climate change, low-income, frontier and development economies as well as Pacific countries are particularly at risk.

On the upside

Regional and multilateral trade agreements however, are expected to provide a boost to trade and growth.

“Further progress on these agreements, including, for example, a broadening of the Trans-Pacific Partnership, could benefit many economies in the region.

Fijisun E-edition
Advertise with fijisun
Subscribe-to-Newspaper
Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper
error: