Hon Prasad Backs PM’s Economic Message

National Federation Party (NFP) leader Professor Biman Prasad has backed Prime Minister Sitiveni Rabuka’s assessment of Fiji’s economy, pointing to stronger government finances and foreign reserves despite growing international pressures.

Professor Prasad said Fiji’s economic position must be viewed against the significant global challenges the country has had to navigate, including wars in Europe and the Middle East, volatile fuel prices, higher food and energy costs and disruptions to international trade.

The figures show that Fiji made substantial progress in repairing its finances following the COVID-19 pandemic.

Government’s overall budget deficit fell from 7.2 percent of GDP in 2022–23 to 3.4 percent in 2023–24 and 2.5 percent in 2024–25.

Government revenue also increased from around $2.75 billion in 2022–23 to more than $4 billion in 2024–25, while the debt-to-GDP ratio declined to 77.1 percent by July 2025.

The International Monetary Fund has also acknowledged the progress made on fiscal adjustment, while continuing to caution that Fiji’s public debt remains high and further consolidation will be required.

Fiji’s foreign reserves have meanwhile strengthened considerably. Reserve Bank of Fiji figures show reserves reaching around $3.9 billion by August 2026, providing approximately 5.5 months of retained import cover.

Professor Prasad’s assessment supports the Prime Minister’s position that Fiji has demonstrated resilience despite an increasingly difficult international environment.

However, he also acknowledged that significant challenges remain.

Fiji’s longer-term task is to translate improved fiscal stability into greater private investment, productivity, infrastructure development, exports and sustained growth while continuing to bring public debt down.

The World Bank has estimated Fiji’s underlying growth potential at around 3 percent and says significantly stronger growth would be required for the country to reach high-income status within the next two decades.

Professor Prasad’s assessment is that the first phase following the pandemic was largely about repairing Fiji’s fiscal position.

The next challenge is ensuring that stronger foundations translate into a more productive and resilient economy.

Professor Prasad’s assessment is also supported by major international institutions.

The IMF has welcomed Fiji’s continued economic recovery and previously acknowledged “significant progress” in fiscal consolidation, while the World Bank has recognised resilient economic performance and the ADB says Fiji’s economy continues to grow despite increasingly difficult global conditions.