Small developing economies like Fiji are even more disadvantaged as we cannot sustain high public debt for too long due to limited and volatile revenue streams of Government and the need to maintain adequate fiscal buffers to mitigate future crises. Fiji’s Government debt is currently estimated to be just under 50 percent of GDP.
While we are a bit fortunate that we have relatively low external Government debt, of around 15 percent of GDP, which shields us from exchange rate risks, Government must remain committed to reduce our total debt further.