There has been relatively little research on the economic impacts of natural disasters to date. This paper reports findings of a study of Fiji which is intended as a contribution in filling that gap. Findings include the following. Severe natural disasters constitute major exogenous shocks to the Fijian economy, resulting in substantial declines in GDP. Both the manufacturing and agricultural sectors, as well as overall GDP, have become increasingly vukierable to natural disasters since the early 1980s. Current changes in the agricultural sector suggest that its vulnerability to natural disasters could increase further in the short- to medium-term. However, the vulnerability of the manufacturing sector looks set to decline. Severe natural disasters have had profound budgetary implications.  The balance of payments has been relatively immune to natural disasters, primarily reflecting higher reinsurance flows as well as the use of sugar reserves to further boost earnings in the event of a disaster. However, anticipated diversification out of sugar production could increase the exposure of the balance of payments.  Considerable attention has been paid to disaster management, particularly preparedness and post-disaster activities. Much less effort has been made to incorporate hazard risks into broader economic strategic planning or to mitigate the economic impacts, specifically, of disasters.  There has been a gradual breakdown in traditional mitigation and coping mechanisms and communities have increasingly turned to the government for assistance in the aftermath of disasters.