10 Apr 2014

Rebalancing of economy needed in Fiji: ADB

2:14 pm on 10 April 2014

The Asian Development Bank says Fiji needs to rebalance its economy away from consumer-driven growth which it says is not sustainable in the medium term.

In its flagship report for the year, the ADB says business and consumer confidence continues to strengthen as clear progress is made towards elections.

It says growth is projected to increase to three percent in 2015 from 2.8 percent this year.

A principal economist with the bank, Emma Veve, says Fiji needs growth to come from direct foreign investment in sectors like tourism, mining and agriculture rather than just incentive-driven consumer spending.

"Our growth forecasts are based on the expectation of a free and fair election that will be accepted universally. We see signs of that and we are confident it will happen. What we need to see is the policies that the elected government puts in place and just how supportive of sustained growth those policies are."

Emma Veve of the Asian Development Bank.