State- Owned Enterprises Contribute Poorly To Growth Despite Huge Assets

Despite total assets worth almost a quarter of Gross Domestic Product (GDP) Fiji’s state-owned enterprises contribute around 3% to annual economic growth over the past 10 years.

This is based on a newly published report on state-owned enterprises from the Asian Development Bank.

“The portfolio’s overall contribution to GDP averaged 3.7% over the 2010 - 2020 period, substantially lower than the estimated 16%-22% of gross fixed investment in the economy controlled by state-owned enterprises in 2020,” it said.

Titled: “Finding Balance 2023”, the report compared the performance of state-owned enterprises in Fiji and eight other Pacific island countries, and argued the case for enterprises commercialisation through privatisation in order to improve financial performance and service delivery.

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Story by: dionisia.tabureguci@fijisun.com.fj