Economy in Fiji is recovering well after Tropical Cyclone Winston - Murphy

An International Monetary Fund visit team led by Pablo Lopez Murphy has stated that the economy in Fiji is recovering well after Tropical Cyclone Winston and is expected to record its eighth consecutive year of expansion in 2017.

Murphy says that the growth is expected to pick up to about 4% in 2017, underpinned by reconstruction activities, a vibrant tourism sector, and the recovery of agriculture production.

The IMF team adds that the risks to the economic outlook are largely related to external developments.

Murphy says the economy is vulnerable to natural disasters that weigh on growth and a tightening of global financial conditions could affect the capital inflows as well.

He states that a possible growth slowdown in China could affect Fiji through its trading partners, especially Australia and New Zealand.

Murphy says sustaining strong growth will depend on maintaining financial stability, rebuilding revenue policy buffers, and boosting private sector development.

The team from the International Monetary Fund visited Fiji from the 29th of November to the 12th of December.