Fiji Islands

Contraction likely in 2009 due to flood damage and effects of the global crisis

Modest growth in 2008 was achieved amidst rising inflation and continued political uncertainty, which eroded business confidence and aid from donors. The economy is expected to contract in 2009, owing to severe flood damage early this year and the impact on tourism and remittances of the global downturn. A significant improvement in prospects depends on a return to elected government and on reforms to encourage investment. Read the full report.