Question

Identify the links and argue the economic effects of COVID-19 to Fiji. Provide examples to support your arguments

Answer 1

Fiji is braced for a deadly epidemic that would easily spread to the point of destroying its health care system. Even if the worst-case health scenario is avoided, however, a devastating economic impact seems inevitable. Tourism employs more than 150,000 people directly or indirectly in diverse industries. The knock-on impact of those job cuts is going to be massive. Most of those working in the tourism sector help dependents in a country where incomes are low, living costs are high, and support from the government is limited.

Fiji 's Minister of Economy and Attorney-General Aiyaz Sayed-Khaiyum announced a budget of FJ$1bn in economic stimulus to assist businesses and workers in the current climate, enabling some workers to access up to FJ$1,000 from their superannuation funds, with government topping up payments to ineligible candidates.

Banks and employ buying firms to provide six-month deferral of loan repayments for Fijians who have lost their jobs or shortened their hours. Open even to companies Banks to waive all minimum balance charges in customer accounts and eliminate the minimum purchase requirement for electronic transactions Fiji Investment Corporation Limited to be re-injected into small and medium-sized companies Conversion of Fiji Sugar Corporation, PAFCO, Fiji Rice Limited, Food Processors Limited and Viti Corp Company Limited

The Fijian economy is expected to contract more sharply than the previously estimated -4.3 per cent in 2020. Conditions on the labor market in Fiji have deteriorated with COVID-19, resulting in layoffs and reduced hours in line with the stoppage of tourism activity, lockdowns and deterioration of economic activity.