Economic recovery a must for Fiji

Submitted by TemoL on Thu, 25/02/2010 - 7:45am

Australia and New Zealand Banking Group's Chief Economic Asia Pacific Paul Gruenwald said Fiji has to look for a long term solution for economic recovery.

He said Fiji's economic recovery remains weak although tourist arrivals from Australia have turned around.

Mr Gruenwald highlighted that inflation in Fiji continues to rise and has eroded some of the competitiveness gains from the devaluation.

He said Fiji needs a recovery in discretionary demand in its major trading and tourism partners in order for growth to pickup this year.

Mr Gruenwald highlighted in his report that foreign reserves were 1.1 billion dollars at end of January this year equivalent to three and half months of imports.