THE Government is closely monitoring global developments that could affect international oil prices, including ongoing conflicts and emerging geopolitical tensions, as uncertainty continues to ripple through global energy markets.
Minister of Finance Esrom Immanuel said Fiji has so far been fortunate that fuel prices have remained relatively stable, despite unrest in several parts of the world, particularly as US Oil prices rose on Sunday following the attack on Venezuela.
“We will continue to closely assess global conditions and their potential implications on fuel prices and the Fijian economy,” Mr Immanuel said.
“Should the need arise, we stand ready to respond in a timely and responsible manner to support economic stability and protect our most vulnerable households, but at this stage, it is too early.”
Meanwhile, National Federation Party leader and former minister of finance Professor Biman Prasad said Fiji’s economy is “strong” and prepared to “ride out” any financial shocks caused by escalating global conflicts.
He said Government’s strategic fiscal policies have created a vital safety net against supply chain disruptions.
“We don’t have to panic as we have a very reasonable fiscal space and if we keep the confidence and growth momentum that we had in 2024 and 2025, we should ride out any adverse impacts on our economy,” Prof Prasad said.
He assured that the 2025-26 Budget was specifically designed to anticipate the fallout from major global events.
He said the “anticipatory and slightly expansionary budget” included “solid social and economic measures to cushion any short- to-medium term impact of the global conflicts and disruption of supply chains”.
“Data from the Fiji Bureau of Statistics and the Reserve Bank of Fiji (RBF) show a downward trend in inflation over the last two years.
“Additionally, tax reforms and increased compliance have allowed the Government to collect more revenue and bring the debt-to-GDP ratio below 80 per cent.
“Looking ahead, the Government’s national development plan aims to transition Fiji into a high-income country by 2050, requiring an average annual growth rate of four to five per cent.”
Prof Prasad emphasised that achieving this would require more than a “business-as-usual approach,” with plans already underway for infrastructure development in renewable energy, health, and education.
“So once again we don’t have to panic about the global conflicts, but we need to continue with the momentum of supporting our private sector.”
