## IMF Executive Board Concludes 2019 Article IV Consultation with Fiji _IMF News, March 20, 2020_ ## Source details **Canonical URL:** [IMF Executive Board Concludes 2019 Article IV Consultation with Fiji](https://www.imf.org/en/news/articles/2020/03/19/pr2091-fiji-imf-executive-board-concludes-2019-article-iv-consultation) ## Other formats - [Markdown version](/en/news/articles/2020/03/19/pr2091-fiji-imf-executive-board-concludes-2019-article-iv-consultation/index.md) - [Structured JSON version](/en/news/articles/2020/03/19/pr2091-fiji-imf-executive-board-concludes-2019-article-iv-consultation/index.json) - [Bundle manifest](/en/news/articles/2020/03/19/pr2091-fiji-imf-executive-board-concludes-2019-article-iv-consultation/bundle-manifest.json) ## Bibliographic details - Published: March 20, 2020 --- ### Overview - Press Release No. 20/91; finalized in January (reported March 20, 2020). - The IMF Executive Board concluded the Article IV consultation with Fiji, assessing developments through 2019 and providing policy advice for the medium term. - The impact of COVID-19 on Fiji’s GDP growth was not assessed in this report which was finalized in January. ### Economic performance and outlook - Growth slowed sharply in 2019; growth is estimated to have reached about 1 percent in 2019. - Growth drivers in 2019: resilient tourism and remittances. - Outlook: GDP growth should pick up gradually as the private sector regains dynamism. - Inflation pressures: subdued. ### Fiscal and external vulnerabilities - Recent years (2017–18) saw relatively high growth amid rising external and fiscal imbalances; fiscal space is now at risk and external vulnerabilities remain significant. - Fiscal consolidation priorities: - Reduce fiscal imbalances to rebuild buffers for natural disasters and to maintain public debt sustainability. - Fiscal consolidation should focus on reining in current spending given limited scope for further revenue mobilization and the need for capital spending to improve climate resilience. - A credible medium-term fiscal strategy is needed to place the debt-to-GDP ratio on a downward path. - External sector: external imbalances expected to narrow as policy support is withdrawn. ### Monetary policy and financial sector - Directors assessed the stance of monetary policy as appropriate; continued focus should be on maintaining adequate foreign reserves. - Central bank recommendations: - Continue to rely on the automatic stabilizing mechanism of the peg. - Avoid financing the government. - Strengthen operational independence. - Gradually relax remaining exchange restrictions, with technical support from the Fund. - Financial stability priorities: - Safeguard financial stability by upgrading supervision of nonbank financial institutions. - Adopt the Credit Union Act. - Closely monitor nonperforming loans. - Continue strengthening the AML/CFT framework in line with FATF recommendations. ### Structural reforms and inclusiveness - Directors welcomed authorities’ structural reform initiatives and encouraged: - Sustained efforts to improve the business environment and foster private sector investment. - Strengthening governance and aligning the investment regime with international best practices. - Reforms to labor and product markets to boost female labor force participation and rationalize price controls. - Upgrading the disaster risk management framework. - Tackling the gender gap in labor force participation was highlighted as a priority to boost potential growth and make growth more inclusive. ### Executive Board assessment - Directors noted the favorable medium-term growth outlook but stressed significant risks: rising fiscal and external imbalances, and natural disasters. - Emphasis on growth-friendly fiscal consolidation, protecting priority investments and social programs while rationalizing current spending. - Support for policies to boost potential growth and build resilience to weather-related shocks. ### Key statistics (selected figures) - Quota: SDR 98.4 million - GDP per capita (2018): US$6,208 - Nominal GDP (2018): US$5.5 billion - Real GDP growth: - 2015: 4.7 - 2016: 2.5 - 2017: 5.4 - 2018: 3.5 - 2019: 1.0 - 2020 Proj.: 1.8 - Consumer prices (average): - 2015: 1.4 - 2016: 3.9 - 2017: 3.4 - 2018: 4.1 - 2019: 1.9 - 2020 Proj.: 2.0 - Central government budget (percent of GDP): - Revenue 2019: 25.4; 2020 Proj.: 25.7 - Expenditure 2019: 30.3; 2020 Proj.: 30.2 - Fiscal balance 2019: -4.9; 2020 Proj.: -4.5 - Public debt 2019: 47.8; 2020 Proj.: 50.3 - Private sector credit: - 2017: 13.9 - 2018: 14.9 - 2019: 7.0 - 2020 Proj.: 6.0 - Current account balance (percent of GDP): - 2015: -3.5 - 2016: -3.6 - 2017: -6.7 - 2018: -8.5 - 2019: -7.2 - 2020 Proj.: -6.9 - Gross official reserves (in millions of U.S. dollars): - 2015: 921 - 2016: 915 - 2017: 1,103 - 2018: 940 - 2019: 1,008 - 2020 Proj.: 1,038 - GDP at current market prices (in millions of U.S. dollars): - 2015: 4,682 - 2016: 4,930 - 2017: 5,353 - 2018: 5,537 - 2019: 5,526 - 2020 Proj.: 5,766 - GDP per capita (in U.S. dollars): - 2015: 5,386 - 2016: 5,621 - 2017: 6,050 - 2018: 6,223 - 2019: 6,176 - 2020 Proj.: 6,409 *Source: IMF Executive Board Concluding Statement on the 2019 Article IV Consultation with Fiji (press release, March 20, 2020).* --- ## References - [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg) - [The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx) - [Republic of Fiji and the IMF](http://www.imf.org/external/country/FJI/index.htm) - [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance) - [Press Releases](https://www.imf.org/en/news/searchnews) - [PRESS CENTER](http://presscenter.imf.org/) - [http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2020/03/19/pr2091-fiji-imf-executive-board-concludes-2019-article-iv-consultation_