Fijian Economy: Macroeconomic Analysis of COVID-19 Impact and Policies

This report presents a macroeconomic analysis of the impact of the COVID-19 pandemic on the Fijian economy. It begins with a global overview of the pandemic's effects, including the number of confirmed cases and the restrictive measures implemented worldwide. The main body focuses on the specific challenges faced by Pacific Island nations, highlighting the evaporation of tourism, disruptions to international trade, and reduced remittances. The report examines the impact on income, detailing the decline in GDP and the rise in underemployment. It assesses the impact on health, discussing the strain on healthcare systems and the increased risks, particularly for women. The report also analyzes the government's policies and initiatives, such as financial assistance programs, and their effects on the economy. The conclusion summarizes the key findings, emphasizing the vulnerability of the Fijian economy and the need for sustainable recovery strategies. Overall, the report provides a comprehensive understanding of the economic challenges and policy responses in Fiji during the COVID-19 pandemic.

Macroeconomic Analysis

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Global COVID impact.................................................................................................................3
Policies and initiative taken up by Fijian government.................................................................9
Impact of measure on Fijian economy.......................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Macroeconomic analysis refers to the process for utilizing all macroeconomic factor and
principle of economy. It is rare text which holds on both comprehensive and rigorous as well as
concise and simple understanding to various factors such as employments, inflation,
governments policies. The outbreak of COVID 19 pandemic have disrupted the economy all
around world bringing up global recession.
The evolution of pandemic and its economic impact is having high uncertainty which have
made very difficult for policy makers to formulate appropriate macroeconomic policy response.
In this article there will be discussion potential impact COVID 19 on income, health and welfare
on Pacific people. Beside this, article will have specific discussion on various polices and
initiative have functioned up to meet target objectives by Fijian economy.
MAIN BODY
Global COVID impact
For dealing with uncertain challenges caused by COVID 19 pandemic have created up
risk toll on people across the world. While writing up this article, there are 43500000 confirmed
cases of COVI 19 around the globe. As pr the official report, the targets confirmed cases were
from united states, Italy, France followed up by India. However, the countries with new cases
have less aggressive hit under considerable strain. Many countries have cleared up with
restrictive measure such as lockdown, shelter in place to contain academic at local level. The
different government have failed to take up situation to slow down the spread of coronavirus. On
January 23, Chinese authorities have declared the COVID 19 as worldwide pandemic.
The European countries have sense mase as necessity for security ordering up the
nationwide lockdown tuning out to be first country to do so. The government have banned all
travel around country making people to leave home when only it is essential. People have to
carry declaration form along with waring up mask and disposable gloves. On the other hand, UK
have less rigid approach as compare to European counties in order to maintain proper balance
between mental and physical health. In addition, PR actioner in UK National Health Services
have been bracing up strain to NHS resources cracking up under pressure of increasing COVID
19 cases. The strategy has involved up with gradual easing of lockdown measure in increasing
up COVID 19 testing. Testing will be helpful in reinsuring exposed to coronavirus receiving the
care they need for wishing up to return in normal life, little by little.
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The global survey has been taken up conducted in two specific phases on 30000 people
across 27 countries. The countries were market up in access and affordability to healthcare” and
“communicable/infectious disease containment and prevention” tied as the top two priorities on
the list. On the other hand, “Corruption and transparency” stand up on the 3rd most urgent issues
turning out citizen as frustrated with government handling on COVID 19 around globe. As the
result stated
 Globally 71% respondent states it as lowest point in their country history.
 Around two third respondent states that their leader was in touch with rest of company.
 Only three countries (Malaysia, china and India) major respondent have strongly
supported the country regarding handling of pandemic situation.
 In us only 29 % of respondent are supporting up their country.
` As the key finding national lockdowns swept the globe with shift towards virtual
learning leading to increase up urgency in access and affordability to education. Around 64 %
people globally as urgent issues to solve out personally. There has been the biggest increase
urgency in financial vulnerability. This have assessed the economic impact of pandemic having
bigger effects than virus itself.
On the other hand, pandemic have exacerbated the world socio economic challenges as
every issue in every county have gained up intensity. The issue ae such as infectious disease ana
containments, accessibility and affordability to healthcare, corruption nd transparency, climate
change and environmental degradation, system justice and inequality and poverty and
deprivation of human need. Beside this business have stepped out as to meet up moment. As the
data have indication as 61% ae stating that’s companies have tend out more reliable ana
governments in keeping up country running during COVID 19. They have given up the charge to
speak up solving out social economic challenges.
Pacific countries
Pacific islands are one of the remote countries on earth. Pacific island havehas weakened
in the month on COVID due to evaporation of tourism, severe disruption to international trade
and remittances reduction. In these countries’ pandemic have cut deeper cuts even worst
cyclones for past years. the pacific island share up unique challenges due to be in small in
size ,size, geographically remote ,remote, vulnerable shockvulnerable withshock with limited
economics devastedeconomics devasted by COVID-19.
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Pacific island has need to sustain economies during the crisis in order to have faster
recovery. Countries have need to make up maximum allocation of resources to vulnerable groups
effected by country.
Many island countries are facing up steep collapse followed up heels of pandemic.
There have been estimation account 20-30 percent of economic activity. Tourism have been the
prime sources of employments and foreign exchange for such as Fiji, Palau, and Samoa.
As per on 13 October, 7 countries (Solomon Islands, Commonwealth of the Northern Marianas,
Papua New Guinea, Fiji, French Polynesia, Guam and New Caledonia) have reported with 7124
assessed and 82 death with case of fatality proportion of 1.2%.
 In last on week, there were 1400 new cases and 7 deaths in PICTs.
 Fiji have not reported up with any case in last 28 days.
 New Caledonia have not reported up with any case in last 14 days.
 Hawaii: Cases are decreasing, community transmission is ongoing.
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Impact on income
The economic pain inflated by the pandemic COVID 19 crisiscrises in pacific region
haveregion have been unprecedented certainlyunprecedented postcolonialcertainly postcolonial
area. Pacifica island have transformed itself initself in last 40 years Highyears High level of
underof under employments and weak systemweak system of health have mad pacific island
regionisland region highly vulnerable into the COVID pandemic
COVID have represented up with significant changes for the regions as SPC or pacific
community lead public health council as s the Council of Regional Organisations in the Pacific
(CROP) taking up all necessary measure which is keeping out to address community spread of
virus. This have inclusion of the responsive framework for supporting staff will being and
business continuity to reduce regional impact. Economy growth of individual countries in last 5
years have been shown as below in which Fiji is standout performers asperformers as growth
beengrowth been slowing since 2018. Hence there is weak growth outside resources and
declining employment.
But after the situation of pandemic, the current year GDP for 14 countries projected out before
and after pandemic have the striking range the countries have the set level of contradiction
ranging from mild to massive.
There were high level of variation reflecting upon level of uncertainty in playing out of
pandemic but is significantly correlates for various countries tourism with virtual as cessation of
international trade. The Fijian government reckons that 1/3rd of workforce of country after
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pandemic situation is either underemployed or on reduced hours. The world banks say that
there isare potential impacts of the COVID-19 situation heightening risk possess by Fijian
governments and economy.
It clearly depends on the length of coronavirus crisis along with severity level of
disruption on global economy, tourism impacts which is main stay of Fijian economy. The
economy is particularly vulnerable to the downside risk stemming slower growth in major
trading partners as it adds the impact of tourism, remittance and exports receipt. FIJI poverty
has been impacted due to COVID 19 which is very difficult to estimates. The sever inapt on
tourism have cree up the ripple effect on several industries as more than 80 % of jobs in for a
sectorssector are salaries employees who are difficult to replace in general economic slowdown.
Such a shock to tourism industry areis further ripple effect have significantly
increasesignificantly increase rate of poverty and deepen up the poverty gaps .gaps.
On the other hand, as it has been considered with positive note there have been
anticipation of new air routes and share code arrangements with Asian and Indian carriers
created a potential impact for boosting up tourism. If in situation of pandemic crisis is contained,
there is maximum possibility over boosting up stable oil prices benefitting out inflation, import
and foreign reserves.
Impact on health
The pandemic has the sever level of impacts on the capacity of health systems in order to
continue delivering essential health serves. In all countries, the health care system has been
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challenged due to the increasing demand of COVID 19 patients. This have turned out to be
critical for maintaining preventive and curative servos to mist vulnerable s population such as
children, older persons, people living with chronic conditions, minorities and people living with
disabilities.
it is important for countries to opt with balances at optimal level on fighting up with
COVIDwith COVID 19 pandemics alongpandemics along with maintainwith maintain of
essentials healthessentials health services .services. WHO is helping out each and every country
to make coordination with efforts across several region for supporting out the implementations of
targeted action? This will be helping out in recognizing and maintain with access.
In case of FIJI ,FIJI, global data confirm with underlyingwith underlying health
condition havecondition have execrable theexecrable the impact of OVID 19
pandemic .pandemic. This have increased up risk of mortality more importantly to women for
Fijian country. women comprise up of 63% of health workers, 55% in medical staff, 89% in
nursing, 77% labours. in total it can be sets as 43% of logistical staff are women who are primary
care givers of familiarity and community contributing in overall development of nation.
Due to the focus of the COVID resonance, there may be higher risk as interruption in
sexual and reproductive health services. There was major risk of maternal mortality due to
losing accessing of vital halts services. It is likely to states as due to look down, the sexual
activity will increase creating up consequences for unwanted pregnancies and overall ability of
family planning.
People welfare
Hence rapid spread of the pandemic is termed out to be challenging aspects foraspects
for governments. The pandemic havehas caused up global upheaval wereupheaval were
governing havegoverning have to take up extreme measure for way of limiting up the human
ndhuman nd economic cost disruptioncost disruption. It is turning out to be mor consequential
public policy as in mass behaviour change. The economy is particularly vulnerable to the
downside risk stemming slower growth in major trading partners as it adds the impact of
tourism, remittance and exports receipt. FIJI poverty has been impacted due to COVID 19
which is very difficult to estimates. Fijian worker in the hospitals sectors who have lost the jobs
have accessing the entail $1000 dollars into FNPF account along with additional funds. this will
be considered as he situational unfolds with full value employment.
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On the other hand, employee who where been affected national wide due to their physical
distancing requires who have worked out in gyms, fitness centres, swimming pools and
nightclubs, along with employees in the Lautoka confined area carved out with loss of pay or pay
cut will be able to get access of $500 from FNPF account. In addition, government will also
compensate or subsided difference in any Fijian is not able to full amount available.
On the other hand, the individual who are working out in informal sectors in lockdown
areas as government with proving up the one-off relief payment of $150 dollars. This will
measure FNPF $150 million dollars back into economy topped off $60 million dollars. The
government is asking for all employees in FIJI to have reduction in FNPF contribution formfrom
8 % to 5% putting out the $80 million in the pocket of Fijian workers in next nine
months .months. this will be successful in maintaining steady contribution to superannuation
scheme.
During this period ,period, bank will be waiving off the charges on minimum balances
ofbalances of customer accounts aaccounts a along with removing over purchasing requirements
forrequirements for electronic tractions .tractions. The government have commitments to protect
ordinary Fijians asFijians as one who are capable to pay the mortgages would apaywould apay
the on in order to reduce burdenreduce burden on country development in well manner. Hence
taken together COVI 19 responses deals banks will be able to provide up he estimated relief
forrelief for $400 million dollars for workers and companies ––that’s $820 million dollars in
total stimulus so far for anyone keeping count.
Policies and initiative taken up by Fijian government
As per date on 17 august 2020, COVID is currently contained towards the isolation
facilities s cases carry are limited to only airedonly aired international passengers
whopassengers who are tested positive. Entry in FIJI country’s is completely restricted but in the
case of exception travel in possible through the sea routes. Traveller have nee to contract with
Fiji immigration in term of specific enquires Only one international flight will travels to Fiji each
week an Air New Zealand round trip flight every Thursday to/from Auckland. In addition, Fiji
airways have been suspended for international passengers through ned of September 2020. The
Fiji ministry of health have announced that’s non-Fiji citizen will be charged with 300 FJD
testing fee for a COVID-19 test.
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In term of health sector, Fiji government have taken up initiate to world bank by getting
up approval for US$7.4 million funding to support Fiji government in its health system
development and walk out COVID 19 emergency. The Prime minister is putting up focus on
providing longer term security fir Fijian and economic recovery paths. The situation of pandemic
crisis is contained, there is maximum possibility over boosting up stable oil prices benefitting out
inflation, import and foreign reserves.
This support has inclusion of improvement in connectivity as well supporting health care
connectivity for 35 heath facilities as well as other sector trough ICT innovation. The project
havehas extended helping out for medical supplies a Personal Protective Equipment (PPEs),
intensive care unit beds and ventilators. Beside this there were installation of medial indicator
serving out the divisional hospitals along with Colonial War Memorial Hospital, the country’s
largest hospital.
This is financing put to have concessional term under Small Islands Economies
Exception with 0% interest within the grace period of 10 years an maturity for 40years .The
project have been coordinated as response project for COVID 19 approved for various countries
as for Papua New Guinea, the Republic of the Marshall Islands, Samoa, Tonga and Vanuatu
with additional long-term response and recovery projects to be announced. The world banks
havebanks have work is partnershipis partnership with 12 countries cross the pacific
supporting out he 85 projects totally amount US$1.8 billion in different sector including
agriculture, aviation and transport, climate resilience and adaptation, economic policy, education
and employment, energy, fisheries, health, macroeconomic management, rural development,
telecommunications and tourism.
More into moving out the Fijian governates imitative student repaying out the tertiary
education loans have the suspended repayments until 31until 31 dec 2020 providing out to have
immediate relief forrelief for around $10 million .million. The reserve bank of Fiji is steeping up
inup in the unpresented economyunpresented economy wide stimuluswide alongstimulus
along with reacclimatising the naturasthe naturas disaster rehabilitation facility renamed as
Disaster Rehabilitation and Containment Facility.
This are facility will be helping out in making up of $ 60 million worth loan toloan to the
bank available at interest of 1 %. This loan can be used by bank tobank to prove commercial
loan to individual owning small or medium size enterprise atenterprise at the maximum rate of 5
10

%. At the result, lower rate will increase borrowing alongborrowing along giving with financial
resource toresource to ease down pressure of pandemic anpandemic an keep up door open for
respective jobs .jobs.
The next provision regrading export income deduction will be increase from 50 per cent to
60 per cent for three tax years –– 2020, 2021, and 2022. In additionaddition, the business loosed
around $20,000 dollars will be allowed to be deducted against employment income.
A 100% write-off of up to $10,000 dollars is availed purchase of fixed assets for business
purposes. A 100% write-off will be granted up for purpose of construction of new commercial &
industrial buildings,
Impact of measure on Fijian economy.
The economy is particularly vulnerable to the downside risk stemming slower growth in
major trading partners as it adds the impact of tourism, remittance and exports receipt. FIJI
poverty has been impacted due to COVID 19 which is very difficult to estimates. The country is
facing up the constant threat of natural disaster which is causing undelays in aide structural
reforms for mobilizing private investment. This will be helpful in contributing slower growth
and high debt to GDP ratio. FNPF pays out the 3284 members for the second round of phase two
COVID 109 withdraw around the amounting of $3.61 million over 5 fortnights. As per the
previous statement, it has been stated as members were paid $722,480 in the first payment cycle
with $531,973.60 subsidized by Government.
The government have made clear use of information technology as the withdraw for their
phase 4 have been apply for my FNPF App which need to be down loaded for google paly store
and apple store. Government is connecting up the citizen to digital data base by ensuring up to fil
the correct email address and mobile number which have been updated in FNPF
account .account. This scheme also wants to have minimum general account balances of $ 135
and ember are need up to be employed from 1st October 2017 to 30th September 2019, to qualify
for Phase 4.
On the other hand, ministry of economy are stepping up to pays $220 as the
unemployment benefits tobenefits to every FNPF members whomembers who have lost in their
jobs duejobs due to the sever effect of pandemic ndpandemic nd their general account are
depleted . The governing havehas leadled up the foundation of Rural Integrated Enterprises and
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Development or FRIEND, TISI Sangam and the Civil Society Organizations Alliance for
COVID-19 Humanitarian Response in order to seek up the extended assistances forassistances
for providing out the food banks, seedlings and counselling for affected families.
As the impacts the several levels of initiate taken up by the government have provided
up the technical support and financial assistance to the local entrepreneur and experts in Fiji. this
is about complete solution developing and implementing solution to most vulnerable group oping
with adverse socioadverse socio economic impacteconomic ofimpact of COVID 19
pandemic .pandemic.
The bank loans provided up at least interact rate have helped out several Entrepreneurs,
start-ups, community projects, youth and women groups, and innovators who were fessing the
highthe high ell ofell of uncertainties inuncertainties in financial system ,system, supply ais n
usuals social practices. Moving out to health implication the Prime minister focus in providing
longer term security fir Fijian and economic recovery paths. The situation of pandemic crisis is
contained, there is maximum possibility over boosting up stable oil prices benefitting out
inflation, import and foreign reserves.
This support has inclusion of improvement in connectivity as well supporting health care
connectivity for 35 heath facilities as well as other sector trough ICT innovation. The project
havehas extended helping out for medical supplies a Personal Protective Equipment (PPEs),
intensive care unit beds and ventilators. The government have commitments to protect ordinary
Fijians asFijians as one who are capable to pay the mortgages would apaywould apay the on in
order to reduce burdenreduce burden on country development in well manner.
Due to the focus of the COVID resonance, there may be higher risk as interruption in
sexual and reproductive health services. There was major risk of maternal mortality due to
losing accessing of vital halts services. It is likely to states as due to look down, the sexual
activity will increase creating up consequences for unwanted pregnancies and overall ability of
family planning.
CONCLUSION
From the above file it can be concluded as Thethe evolution of pandemic and its
economic impact is having high uncertainty which have made very difficult for policy makers to
formulate appropriate macroeconomic policy response. Many countries have cleared up with
restrictive measure such as lockdown, shelter in place to contain academic at local level. UK
12