2 May 2015

Fiji's economic outlook improves

9:57 am on 2 May 2015

Fiji's long-term sovereign credit rating has been raised from B to B+ by international ratings agency Standards and Poors.

Fiji currency

Fiji currency Photo: Supplied

The agency says Fiji's 2013-2015 average real GDP growth to 3.6 percent from 2.6 percent, its smooth transition to an elected government, a more-conducive economic environment, and donor and multilateral lender re-engagement following elections in September 2014 helped lift Fiji's rating.

At the same time Standards and Poors has affirmed Fiji's short-term rating at 'B'.

The credit rating agency says it expects stronger revenue growth in Fiji to keep fiscal deficits low, at close to 2 percent of GDP in 2015-2017.

It says the stable outlook reflects its expectations that a steady political and policy environment in Fiji will sustain economic reforms to support growth and help limit the Fiji government's fiscal deficits and net debt over the next two years.