8 Apr 2013

Ratings agency warns Fiji economy continues to underperform

5:15 am on 8 April 2013

The ratings agency Moody's says economic growth has returned to Fiji and helped stabilised government debt, but it warns the economy is continuing to underperform against similar sized economies.

In its latest report, the agency classifies the financial strength of Fiji's government, economy and institutions as low.

It says the decline in institutional strength reflects the weakness in the country's government and rule of law.

But it does say that fiscal management has improved under the current government.

The report also says that Fiji's limited robustness is driven by the government's low financial strength and high vulnerability to event risk.

It suggests that a return to democracy could improve Fiji's economic prospects further.