Fiji 

Fiji country policy

Policy established 01 May 2012

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Country class: 7

Fiji country facts

Atradius Dutch State Business Economic Research
Country Report last updated :  9 April 2010
Country :  FIJI  

Political Situation
Military Interim Government

Head of state
President Iloilovatu.

Form of government
Government led by the commander-in-chief Frank Bainimarama. Significant influence of tribal chiefs.
 
Internal Economic Situation
Very Cautious Recovery

General situation
The pillars of the economy are sugar production and tourism. Without radical reform the sugar sector is moribund, due to fierce competition from other countries. This reform was due to be financed (and planned) by foreign donors, but since they have suspended aid, this reform is not likely to be carried out soon. Tourism is the most promising sector of the economy, however this sector has suffered from the political instability and the global downturn. A cautious recovery of the sector may materialize if the political setting does not materialize. Remittances from overseas workers is also an important hard currency source. Revenues from gold mining increase since the Vatukoula mine has been reopened. 
After three years of consecutive contraction, Fiji’s economy is expected to show very low (but positive) growth this year.
In December 2009 the economy was hit by a cyclone. 
 
External Economic Situation
Strained Relation With Donors

Main sources of foreign exchange
Tourism, food, garments, remittances, minerals

Main foreign markets
USA (17%), Pacific (15%), Australia (14%), UK (14%).

Main expenses of foreign exchange
Imports of manufactured goods, capital goods, food, fuels.

Balance of payments 
Trade deficits partly compensated by tourism revenues and, increasingly, remittances. Fiji dollar is pegged to a basket consisting of the Aus $, NZ $, Yen, Euro and US $. A 20% devaluation has been implemented by the reserve bank. 
External debt is low but Fiji has no access to international capital markets and is dependant on grants and soft loans.