Suva, May 23 (IANS): Fiji's economy is rebounding strongly this year, and this is encouraging for a developing island nation, an International Monetary Fund (IMF) official said on Monday.

In his meeting with Governor of Reserve Bank of Fiji Ariff Ali earlier in the day, IMF Deputy Managing Director Li Bo said Fiji like all other nations will have to strategically deal with global inflation, reports Xinhua news agency.

Li said the rise in energy and food prices will affect ordinary Fijians if proper policies are not implemented.

He added that a combination policy is needed to deal with this kind of situation including fiscal policy and other public policy.

A lot of vulnerable people are impacted by this high price in food and energy.

"In this kind of situation, we think a targeted fiscal policy that will support the vulnerable group, we think it's important."

The fiscal policy needs to be designed properly to ensure it targets the right group without creating additional pressure on government debt, Li said, adding that the Fijian government will have to carefully consider balancing the two extremes.

Meanwhile, Aaron Batten, regional director of Asian Development Bank's Subregional Office in Suva, said on Monday that Fiji has done tremendously well ever since re-opening its borders for international visitors last December.

The economic outlook for Fiji is strong and the surge in tourists coming back indicates Fiji's economic revival, he added.

Fiji's economy is expected to grow by 11.3 per cent this year.