9 Aug 2018

S&P says Fiji economy recovering well from Cyclone Winston

4:30 pm on 9 August 2018

International credit ratings agency Standard and Poor's expects Fiji's economy to continue to grow strongly and debts to stabilise.

A birds eye view of Lavena village Taveuni in Fiji after Cyclone Winston

A birds eye view of Lavena village Taveuni in Fiji after Cyclone Winston Photo: Alex Perrottet/RNZ

The comments come as the country retains its B+ long-term and B- short-term grade from S&P in the wake of Tropical Cyclone Winston in 2016.

The credit ratings agency said Fiji was on track to recover from debts racked up following the storm, which has cost the country around 5 percent of GDP so far.

But S&P said the economy was doing well, entering the ninth consecutive year of growth and with a promising 12 months ahead.

This is despite a government budget deficit and vulnerabilities to shifts in tourism and future natural disasters.

S&P said Fiji will retain its ranking unless debts rise to 60 percent of GDP or the political environment becomes unstable, something to watch ahead of elections this year.

On the flipside, Fiji's ranking may rise coming out of a successful election or if it loosens foreign exchange restrictions.

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