Fiji is facing a severe public debt crisis, worsened by political instability, slow economic growth, natural disasters like Cyclone Winston, and global shocks such as the 2008 financial crisis and the COVID-19 pandemic. These events have severely impacted key revenue sources, especially tourism.
To manage its growing debt, the government has introduced higher taxes and reduced spending. More fiscal revenue is now being used for debt repayment instead of vital social services, potentially undermining progress toward long-term development and the UN Sustainable Development Goals (SDGs).
Fiji’s future economic stability depends on how effectively it balances debt management with meeting basic needs and investing in sustainable development.