7 Nov 2011

IMF highlights ways to spur Fiji's growth and economy

1:23 pm on 7 November 2011

An International Monetary Fund mission to Fiji has highlighted to need for structural reform and the resolution of political uncertainties as a way of spurring investment and growing the economy.

A team from the influential Washington-based organisation has spent nearly two weeks gathering information and meeting officials from the interim government, academics, business people and civil society groups.

Sally Round reports.

"The mission says Fiji's expected growth rate of two percent for 2011 is by far the best result of the past five years. But it says medium term growth prospects appear relatively weak. The IMF team says there have been many promising initiatives, including policies on land and in the civil service and sugar sector. It says it's critical these initiatives are followed through. The mission says the financial sector is sound but it pointed to the need for pension reform to ensure the sustainability of the Fiji National Provident Fund. It recommends further scaling back of price controls so as not to deter investment but still protect the poor."