The Fiji Commerce and Employers Federation (FCEF) is calling for immediate fiscal consolidation and restraint in government spending amid concerns that Fiji’s national debt could exceed 90 per cent of gross domestic product (GDP) by 2028.
FCEF chief executive officer Edward Bernard said urgent measures were needed to control public expenditure and put the country’s debt on a sustainable path.
“The recently launched Fiji Economic Update report by the World Bank highlights the urgent need to put debt on a sustainable path and reduce lower priority recurrent costs,” Mr Bernard said.
“At the current projected rate, debt is growing faster than the economy.”
He warned that Fiji’s limited fiscal space was restricting the Government’s ability to prepare for future economic shocks and broaden the country’s economic base.
Mr Bernard said high fuel costs caused by supply constraints, coupled with the effects of El Niño, were placing additional pressure on national resources.
He said only 20 per cent of the national budget was allocated to capital expenditure, including critical infrastructure, limiting opportunities for private-sector expansion.
This was also affecting Fiji’s ability to accelerate economic growth and retain skilled workers, he said.
FCEF also expressed concern over declining foreign reserves, warning that continued pressure could affect international trade.
Mr Bernard said tourism earnings and remittances were insufficient to fully cushion the country’s import bill.
He stressed the need for urgent economic diversification, stronger protection for local industries and increased exports.
The federation also wants greater investment in domestic production to replace imported goods and reduce Fiji’s dependence on overseas markets.
FCEF maintains that tighter spending controls, reduced lower-priority recurrent expenditure and policies supporting private-sector growth are essential to strengthening Fiji’s economic resilience.
