The World Bank has released the Fiji Country Economic Memorandum (CEM), a report developed in collaboration with Fiji’s Ministry of Finance, Strategic Planning, National Development and Statistics. The CEM analyzes Fiji’s economic situation and provides recommendations for future growth.
The report examines current and potential drivers of economic growth, focusing on stability, productivity, and human capital development. According to the findings, Fiji's current annual growth rate is 3 percent, which is at the higher end of its estimated capacity. However, to achieve high-income status within two decades, the country would need to increase its growth rate to 5.7 percent per year.
To reach this target, the report suggests that investment and productivity must be increased. It outlines five key policy recommendations:
- Improving the business environment by updating regulations and digitizing administrative procedures. The report states: "A better regulatory framework and digitized administrative procedures, integrated with risk management approaches, could reduce costs for businesses. Establishing effective public-private dialogue would increase reform ownership and effectiveness."
- Increasing competition by reducing state involvement in competitive sectors through divestment of loss-making businesses. The report notes: "Reducing the State presence by divesting loss-making businesses operating in competitive sectors to reduce barriers to competition and eliminate distortions. These reforms could save public funds amounting to 1 percent of GDP for more productive public investment."
- Attracting foreign direct investment by removing restrictions in the services sector and addressing internal barriers.
- Developing workforce skills by strengthening job-matching programs so workers have skills relevant to private sector needs.
- Supporting women’s participation in the labor force by improving access to childcare, enhancing maternity leave policies, and addressing gender bias in hiring and pay practices.
The CEM aims to provide a roadmap for Fiji as it seeks sustainable economic growth through increased productivity and inclusion.