Fiji Economy Expected to do Better: World Bank

Fiji Live - 08/04/2010

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The World Bank expects Fiji’s economy to do better in 2010 than it did last year.

The forecast is part of the World Bank's latest assessment released in Tokyo today.

Radio Australia reports the bank's half-yearly East Asia and Pacific Economic Update said the Pacific is set to benefit from the strong resurgence in East Asian economies and predicts growth for the region of 8.7 per cent in 2010 - almost a full percentage point higher than the forecast in its most recent assessment in November 2009.

The Bank’s chief economist Vikram Nehru said East Asia will grow strongly despite the weakened world economy.

The World Bank rated Fiji’s economic performance last year as the worst in a decade.

Nehru told Radio Australia that while it is difficult to say how much better Fiji would do this year, its economy would improve.

“They have obviously been hit by natural disasters, there are strained relations with the aid and the international community, so things are likely to be difficult, but we still expect that 2010 is going to be better than 2009,” Nehru said.

He also explained why economies like Vanuatu are doing well.

“Vanuatu has had very good macro-economic management, political stability. It's done well in things like agriculture, construction, tourism and so forth and actually it has been an indirect beneficiary of what's happening in Fiji, because many tourists from Australia and New Zealand rather than going to Fiji are ending up in Vanuatu,” Nehru said.

“So it goes to show that if countries do get their acts together, even though they are disadvantaged by distance and size, they can still do well by attracting investment and by attracting tourists and by being able to export.”