Pacific Island nations, particularly Fiji, are contending with profound economic challenges aggravated by inflation, disruptions in tourism, and climate change impacts. Paresh Narayan, founder of the Asia-Pacific Applied Economics Association (APAEA), underscored these concerns during a recent workshop in Suva, where he detailed how Fiji faces difficulties maintaining a steady influx of tourists, experiencing a decrease in remittance inflows due to rising living expenses abroad, and managing inflation amid an unstable global environment.
Narayan highlighted the critical importance of research-driven policy-making to effectively tackle these pressing issues. He noted that small island economies like Fiji are especially susceptible to global shocks, calling for a focus on data-driven policies to improve planning and forecasting capabilities in the region.
Throughout the workshop, participants delved into six policy papers focusing on the interconnected themes of tourism, economic growth, banking sector liquidity, and the effects of climate change on inflation rates. Narayan reiterated that robust research is fundamental to effective policymaking, urging central banks across the region to consider these pressing challenges and develop their own research infrastructures.
He also praised the Reserve Bank of Fiji, recognizing its dedication to promoting evidence-based research over the past four years, resulting in the release of 25 policy papers aimed at bolstering the country’s knowledge economy and positioning it as a leader in addressing both economic and climate-related challenges.
The conference fostered collaboration among economists and central bankers from ten Pacific economies, emphasizing the necessity of a united approach to confront escalating economic challenges. This spirit of cooperation is essential for Pacific nations as they strive to strengthen their resilience to external pressures and enhance their regional and global economic standing.
With policymakers and researchers collaborating to confront these urgent issues, there is a positive outlook that well-founded, research-informed strategies can empower Fiji and its neighboring nations to overcome current adversities and achieve sustained economic growth and stability.