The Fijian economy is anticipated to grow for the tenth consecutive year in 2019 by 1.0 percent following 3.5 percent expansion in 2018.
This is a downgrade from the 2.7 percent projected earlier in May and is the slowest growth rate in a decade.
This is the comment made by Dr. Neelesh Gounder a senior lecturer at the University of the South Pacific.
He says the government cannot provide further stimulus since it has been in a tight fiscal situation beginning from November last year.
“The only option available is to continue with broader structural reforms, hoping to add to recovery and growth in the short to medium term,” he said.
These reforms must include efforts to bring back business and investor confidence. “While the tourism sector will continue to contribute positively to economic growth, a deceleration in visitor arrivals is anticipated”, says Dr Gounder.
According to a statement issued by the Reserve Bank of Fiji and Fiji’s Macroeconomic Committee on Friday, the Governor of RBF Ariff Ali and Chairman of Fiji’s Macroeconomic Committee said the revised lower growth this year reflects moderation in domestic economic activity and is in line with the slowdown anticipated for the global economy.
The Macroeconomic Committee will continue to monitor global and domestic developments and review these macroeconomic projections in April 2020.