Reserve Bank of Fiji governor Ariff Ali says that while the domestic economy is envisaged to contract further this year, the steady progress in local vaccination could pave the way for a modest recovery next year.
He said the vaccinating the population would be essential to control the spread of the virus, help support the reopening of businesses and borders and kick-start tourism activity.
“The latest consumption and investment indicators remain sluggish given the reduced spending power of households and firms,” Mr Ali said.
“The prolonged unemployment situation due to the pandemic has also exacerbated poverty and inequality amongst vulnerable groups.
“In this regard, continued fiscal support will be crucial to ease the burden on households and firms and minimise the scarring effects of the pandemic on long-term growth prospects.”
