Apenisa Waqairadovu 
Fiji is on the brink of an economic meltdown if our debt levels are not taken back to pre-pandemic levels says the World Bank.
The World Bank’s Fiji Public Expenditure Report 2023, states that decisive government action will be critical to bringing Fiji’s debt back to the pre-2020 level.
The global COVID-19 pandemic, multiple severe tropical cyclones, and Russia’s invasion of Ukraine had resulted in an economic crisis of unprecedented scale in Fiji, with debt reaching 90 percent of GDP in 2022, exacerbating the lower economic growth trends that were emerging before the COVID-19 pandemic.
Alarm bells are ringing as the report states that if left unchecked, Fiji’s debt levels are likely to threaten the country’s ongoing economic recovery from the pandemic and sustainable economic development.
Deputy Prime Minister Biman Prasad says the findings of the Public Expenditure Review will serve as an important consideration and input in this entire process of fiscal consolidation.
Stefano Mocci, World Bank Country Manager for Fiji and other Pacific countries says the World Bank remains committed to Fiji’s development priorities, including working together towards Fiji’s economic recovery and resilience strengthening to better withstand future shocks.
The report also offers recommendations of varying degrees of revenue increases and public expenditure cuts to reduce Fiji’s debt to 50 percent of GDP by 2032.
The report provides an in-depth analysis of Fiji’s domestic revenue, cost of Fiji’s civil service; value-for-money of public investments in infrastructure; and the viability of support to Fiji’s sugar industry.
The World Bank Group has six active projects in Fiji – totaling US$414 million in commitments – focused on transport, health, climate change, tourism, and digital connection.
