The Reserve Bank of Fiji is forecasting a decline in the country's economy of 2 to 4% this year in the wake of the December military takeover.
Prior to the military intervention, the bank had predicted a modest growth of 2%.
The governor of the Reserve Bank, Savenaca Narube, says Fiji has been facing many economic problems with unsatisfactory performances in the sugar, fishing, forestry, agriculture and mining industries.
Mr Narube says the military takeover has brought an added dimension to the challenges.
AS well, the recent floods in the west and north of Fiji have worsened the situation.
Mr Narube says while exports have not been performing well, imports have continued to soar.
He says the Reserve Bank has been highlighting for some time that the main challenge is to revive exports to restore a proper balance of payments.