Narube warns of economic free fall and debt crisis

Fiji is navigating one of its most precarious economic periods in decades, with rising costs and significant debt posing a threat to stability, according to Unity Fiji Party Leader Savenaca Narube. Speaking at the State of the Economy Dialogue 2026 in Suva, the former Reserve Bank of Fiji Governor urged the government to implement a tighter fiscal policy, curb rising expenses, and confront corruption.

Narube highlighted that public debt is nearing 85 percent of GDP, severely limiting the government's capacity to address emerging economic pressures. He advocates for fiscal repair primarily through spending cuts, proposing a broad 15 percent reduction in non-essential government expenditure. Specific measures include rolling back parliamentary salaries to 2022 levels, cutting travel costs, freezing new government vehicle purchases, and suspending major reviews like constitutional and electoral commissions.

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A few issues on the cost of living. I know it’s coming from abroad. We really do not have any control of that but we can control the impact. And how that impact is shared in the economy. The equitable burden sharing of this cost of living. At this time, as I see it, the consumers are bearing all this.

Addressing the cost of living, Narube stated that consumers are disproportionately bearing the burden. He called for equitable burden-sharing, suggesting government mechanisms like price controls to scrutinize margins on essential goods. Targeted reductions in fuel import duties, balanced by higher duties on luxury imports, were also proposed as a revenue-neutral yet socially redistributive approach.

Furthermore, Narube warned about currency depreciation, noting a four percent fall against major currencies this year, which amplifies imported inflation and strains household budgets. Corruption was identified as a third immediate priority, described as a structural drain that diverts resources from essential services and contributes to social instability. He called for stronger political leadership in anti-corruption initiatives, supported by enhanced investigative capacity and potentially external expertise.

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Consumers. We need equitable burden sharing and I know government can do this through the mechanism of its price control. Look at the margins. That this price control items.