What is the state of the economy? That is the question where there were differing views from the panelists at the first Fiji Media Council Public Forum for this year held last night in Suva.

Speaking on the theme, "Time to tighten the purse strings?" chairman of the Association of Banks in Fiji Laurie Mellsop highlighted that things are expected to worsen in the months ahead as the situation is not improving fast enough.

Mellsop said the economy is definitely not healthy with the inflation rate at 6% and rising, the 5% civil servants' pay cut, the loss of many jobs in the tourism sector and the closing of Vatukoula Gold Mine.

He said there will be more job losses if the current trend continues and we should brace ourselves for harder times ahead.

However, the Permanent Secretary for Finance Peceli Vocea said otherwise. Highlighting recent reports from the Reserve Bank of Fiji, Vocea said the policies put in place are slowly turning the economy around.

He said foreign reserves are picking up, local revenue collection is on par with projections as of May, and adds that the 2007 total expenditure is expected to pick up quickly in the second half of the year and it should be within budget.

Vocea also said that government finances have stabilized.