The International Monetary Fund's Executive Board said there are encouraging signs of recovery of the Fijian economy however a more favourable investment climate is required for stronger and sustained economic growth.
In it's latest report, the IMF said a more favourable investment climate can materialize only through continued structural reforms and the removal of administrative controls.
The Fund's board said there are a number of downside risks to the growth outlook.
It said public debt and contingent liabilities are equivalent to 74 percent of GDP and limit the government finance Fiji should reserve to respond to frequent shocks.
The IMF board also stateed that volatile commodity prices, increasing reliance on tourism, risk of natural disasters and some uncertainty about external financing represent significant vulnerabilities.
It also suggests that restrictions on the repatriation of profits and dividends should be relaxed to build investor confidence.
The IMF board goes on to say that public enterprise and FNPF reform will bolster fiscal sustainability.
It said that the risk of supporting public enterprises has been made clear by the Fiji Sugar Corporation.
The IMF stateed that the government should move quickly to finalise the FSC restructuring plan and the company should be divested within the next three years.
It said that FNPF reforms should also be completed this year.
Story by: Vijay Narayan
Feature
Encouraging signs of recovery of Fijian economy-IMF
