Minister for Finance Esrom Immanuel. [Photo: FILE]
Rising global fuel prices and economic shocks continue to threaten Fiji’s economy, with Minister for Finance Esrom Immanuel warning that prolonged energy price volatility weakens business confidence, reduces household purchasing power and slows economic growth.
Speaking during Pacific Financial Technical Assistance Centre discussions, Immanuel says Fiji and other Pacific nations remain vulnerable due to challenges that can erase years of fiscal progress overnight.
He says, despite these pressures, Pacific countries are continuing reforms to strengthen institutions and build economic resilience.
“We are small and undiversified. We have a narrow revenue base and have rising public debt, and we are exposed to natural disasters that can erase years of fiscal progress in a single event. And yet, across the Pacific, we continue to choose reform.”
Immanuel stressed that credible budgets, modern revenue systems, transparent debt management and strong financial oversight are critical to protecting people’s livelihoods and ensuring governments can continue funding schools, healthcare and infrastructure.
He also highlighted the growing need for climate-focused financial reforms across the Pacific as countries face increasing climate threats.
Meanwhile, IMF Pacific Islands Division Chief Alasdair Scott says global oil shocks are creating fresh pressure across the region, particularly as Pacific countries rely heavily on fuel for transport, electricity and connectivity.
Scott says rising fuel costs are worsening cost-of-living pressures and could create debt risks for households, businesses and financial institutions if economic conditions deteriorate further.
He says the challenges facing the region reinforce the urgent need for stronger financial systems, careful budget planning and sustainable economic management across the Pacific.
