Fiji lacks financial buffer for a major crisis, forum told

Fiji remains dangerously exposed to future economic and natural disasters because the Government has failed to build adequate financial buffers, Fiscal Review Committee chair Richard Naidu says.

Mr Naidu told the Dialogue Fiji State of the Economy Dialogue that despite years of economic recovery, little had been set aside to deal with a major crisis.

"Nothing's saved up for a rainy day," he said.

"If we do have a crisis, if we do have a cat cyclone or earthquake or something like that, easily we could lose, it could cost us half a billion dollars."

Mr Naidu noted Fiji had avoided major disasters in recent years, describing this as good fortune rather than preparedness.

"We have had no major cyclones. We have had no major events," he said.

"The geologists tell us we are 30 years overdue for an earthquake in Suva."

He said one of the Fiscal Review Committee's major concerns was the Government's limited financial capacity to respond to future shocks because of high debt levels and competing spending demands.

Mr Naidu warned that economic recovery following COVID-19 had not translated into stronger fiscal resilience.