IMF Staff Completes 2015 Article IV Mission to Fiji
“Fiji’s growth momentum has been exceptionally strong. The economy is entering its third year of above 4 percent annual GDP growth. GDP is projected to expand by 4.3 percent in 2015, propelled by strong growth in tourism earnings and remittances, robust credit growth, and low oil prices, as well as high public and domestic private investment. The growth momentum is expected to continue next year. Inflation will rise modestly, but low oil prices will likely keep inflationary pressures at bay.
“Risks to growth are largely related to external developments and, over the medium-term, reform implementation. Fiji is subject to potential risks from lower growth in trading partners (particularly Australia and New Zealand) and its exposure to natural disasters, which can have large human and fiscal costs. Sustaining strong growth will depend on timely and effective implementation of reforms to further bolster the business climate, raising private investment and fostering private sector development. A recalibration of monetary conditions and fiscal consolidation in the medium term are also critical to maintaining sustainable growth.
“The team had fruitful discussions with the Attorney General and Minister of Finance, the Governor of the Reserve Bank of Fiji (RBF), other senior public officials, several government agencies, development partners, private sector representatives, and other stakeholders. Staff from the World Bank and the Asian Development Bank also joined some of the discussions. The team would like to thank the Fijian authorities for their warm hospitality and close cooperation.
“The IMF Executive Board is expected to discuss the 2015 Article IV Consultation in December 2015.”