Pacific Island nations, including Fiji, are grappling with significant economic issues exacerbated by inflation, disruptions in tourism, and the impacts of climate change, as highlighted by Paresh Narayan, the founder of the Asia-Pacific Applied Economics Association (APAEA). He outlined that Fiji’s key challenges involve maintaining a steady flow of tourism, experiencing declines in remittance inflows due to rising living costs overseas, and managing inflation within an unpredictable global landscape.
During an APAEA workshop held in Suva, Narayan emphasized the need for research-driven policy-making to tackle these issues effectively. He pointed out that small island economies like Fiji are particularly vulnerable to global shocks, necessitating a focus on data-backed policies to enhance planning and forecasting capabilities.
At the workshop, participants examined six policy papers addressing the intertwined topics of tourism, economic growth, banking sector liquidity, and how climate impacts are influencing inflation rates. Narayan stressed that sound research underlies resilient policymaking, stating, “We want to motivate other central banks in the region to start thinking about these issues and build their own research ecosystems.”
Narayan also commended the Reserve Bank of Fiji’s commitment to fostering evidence-based research over the past four years, which has resulted in 25 policy papers aimed at strengthening the nation’s knowledge economy and positioning it as a regional leader in managing economic and climate challenges.
The conference saw collaboration among economists and central bankers from ten Pacific economies, promoting a united front to tackle the impending economic challenges. This cooperative spirit is vital for Pacific nations as they look to enhance their resilience against external pressures and elevate their economic standing regionally and globally.
As policymakers and researchers join efforts to address these pressing issues, there is a hopeful outlook that robust, research-informed strategies can help Fiji and its neighbors navigate through current adversities toward sustained economic growth and stability.