'Act Now'

Former Governor of the Reserve Bank of Fiji Savenaca Narube says Government needs to act now as a technical recession has hit closer to home.

Mounting pressures in New Zealand is indication that Fiji needs a plan, says Mr Narube.

New Zealand's economic outlook showed the economy has contracted over two consecutive quarters hence the technical recession.

Official statistics showed that gross domestic product (GDP) was down 0.7 per cent at the end of 2022.

In quarter one of this year, it fell 0.1 per cent. Although the number is minor, other signs suggest that

NZ is likely experiencing an extended period of economic decline that will last longer than six months.

The last time the nation had two consecutive quarters of negative growth, which is the official definition of a recession, its international borders were shut, and the COVID-19 epidemic had just begun to spread over the globe.

While this situation lies at stake, Minister for Finance Biman Prasad says Government was slowly monitoring the situation.

New Zealand High Commissioner to Fiji Charlotte Darlow has assured that the recession would not affect Fiji and New Zealand’s bilateral relationship in any way.

Mr Narube said Fiji, as a small fragile economy, was vulnerable to global developments through its over reliance on tourism and imports, especially food and fuel.

“Therefore, the recession in the world economies including New Zealand is bound to hit our pockets badly,” Mr Narube said.

“The writing was on the wall as central banks started to combat inflation by raising interest rates.

To read more, click on this link to access the full article and details: https://eedition.fijisun.com.fj/subscriptionplans 

Story by: inoke.rabonu@fijisun.com.fj  and josefa.babitu@fijisun.com.fj