The global economic crisis and economic shocks from rising food and fuel prices and periodic cyclones and flooding have impacted Fiji’s fiscal sustainability and have contributed to an increase in rural poverty. There is now a pressing need for a comprehensive set of economic and public sector reforms to provide the foundation for higher growth to tackle poverty.

ADB assistance under a future country partnership strategy will need to take into account increased rural poverty, the decline of key sectors (sugar and garment manufacturing), the vulnerability of the tourism industry, and government budgetary risks.