Government ready to act if Middle East tensions trigger recession

Government will implement mitigation measures should the ongoing geopolitical tension in the Middle East affecting global fuel supply cause a global recession.

Minister for Finance Esrom Immanuel, who is currently in the Western Division for budget consultations, told this masthead that indicators of any economic downturn would be visible in stages.

Mr Immanuel said warnings from global financial institutions of potential recession and its impact on Fiji’s economy are set out in stages, which would mean different impact.

He is not ruling out the potential of the global situation escalating.

“When it happens, when we are prepared, we will put something in place to mitigate against that,” he said.

“It is generally accepted that if a tourism is affected, all the other part of the economy will be affected as well.

“However, between now and if a problem escalates, we will put in place measures to assist the tourism sector, including Fiji Airways.”

Mr Immanuel confirmed that in line with the Fiji National Fuel Emergency Action Plan, the country is still in phase one.

“Confirmation is the supply will be there in May but whether that can cover for more months of fuel depends on our utilisation rate.”

Mr Immanuel said Fiji was not in a stage to implement relief measures such as reducing Value Added Tax or subsidising fuel cost.

“Once we reach the emergency level, then probably some of those measures will be put into place."

Feedback: ivamere.nataro@fijisun.com.fj