Fiji's economic growth unlikely to return to pre-COVID-19 levels in coming years: official

0 Comment(s)Print E-mail Xinhua, February 9, 2021
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SUVA, Feb. 9 (Xinhua) -- A Fijian official warned Tuesday that considering the damage caused by COVID-19, the tropical cyclones and the uncertainty ahead, Fiji's gross domestic product (GDP) is unlikely to return to pre-COVID-19 levels at least for the next three years.

Speaking in the Fijian parliament on the first half of the 2020/2021 financial year for the Fijian government, Fiji's Minister for Economy Aiyaz Sayed-Khaiyum said that the length of border closures is extending into some of the Fijian government's more extreme forecast, and the impacts of cyclones Yasa and Ana are all contributing to the crisis.

Business activity is down across most sectors, the tourism sector remains the hardest hit and visitor arrivals last year declined by 84 percent, he said.

Apart from tourism, overall investment activity in the island nation is greatly subdued and apart from the slowdown of government capital projects, some major construction projects have also slowed down.

According to the minister, the Fijian government has marked double-digit contractions in net VAT collections, weaker consumer demand is also reflective of the near-zero activity in the tourism sector and supply chain disruptions to some extent.

Fiji is an island nation with a population of around 900,000. The tourism industry, which employs about 150,000 people directly and indirectly, accounts for about 38 percent of Fiji's total GDP.

In recent years, Fiji has received more than 800,000 visitors per year, but the outbreak of COVID-19 has brought the tourism industry to a standstill. The Fijian economy contracted by 19 percent last year. Enditem

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