The International Monetary Fund (IMF) has listed a number of challenges that could affect Fiji’s long-term growth prospects.
This is stated in the IMF’s Mission Statement released overnight.
IMF says the challenges are in the areas of:
-structural policy priorities include addressing ageing utilities’ infrastructure.
-improving the transport network and digital connectivity
-mitigating the impact of migration and skilled labour shortages by investing in human capital
-strengthening education and training and facilitating higher female labour force participation
-the financing of terrorism (AML/CFT) framework.
“Progress has been achieved in enhancing the business environment and addressing near-term constraints to growth, such as the launch of an online system to process worker and investor permits within thirty days and enhancing the National Single Window to facilitate business registration and to accelerate approvals of permits,” states the IMF.
“However, a significant acceleration in structural reform momentum is needed to attract higher FDI and boost growth prospects over the medium term.”
IMF adds the banking sector is profitable and solvent.
“Capital levels of all commercial banks remain adequate.”
“However, the growth in unsecured consumer credit merits particularly close monitoring.”
“Financial policies should be attentive to emerging credit risks.”
“Over the past year, authorities have implemented various measures to meet remaining Financial Action Task Force recommendations, but challenges remain—Fiji should continue to tackle the vulnerabilities in its anti-money laundering and countering.”
