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The speed at which the Fiji economy recovers hinges on the interim Government's ability to meet economic challenges, says the World Trade Organisation.
These challenges include restructuring the economy to improve productivity and competitiveness, as well as making urgent political reforms.
The WTO noted these during its Trade Policy Review on Fiji.
It noted that since its last review, “Fiji has undertaken some trade-related reforms and has liberalized and rationalized its foreign investment regime, reforms that are seen as integral to Fiji’s economic priorities of a developing, efficient and competitive open economy to promote export-led growth”.
“Growth has been erratic and generally sluggish, averaging less than 1 per cent annually since 2003.
“There are doubts on the economic benefits of Fiji's expanded network of bilateral and regional agreements; some tax incentives have dubious economic merit; and significant trade and other impediments remain to the efficient allocation of resources, such as government intervention, state-ownership, public and private monopolies and a general lack of competition.”
The report also notes that further market opening and deregulatory measures in key sectors would facilitate adjustment toward a more diversified and efficient economy.
