The ANZ Bank is forecasting Fiji’s economy to grow by 3.4 percent this year, which is higher than the 2.8 percent estimate by the Reserve Bank of Fiji.
In its latest Pacific Insight titled “Fiji’s ‘safe’ mid-term budget won’t upset the apple cart,” ANZ economists Tom Kenny and Dr. Kishti Sen noted that while the government estimates growth at 2.8 percent in 2024 and three percent in 2025 and 2026, they are more optimistic about Fiji’s growth prospects. This confidence is fueled by solid underlying drivers such as visitor arrivals, remittances, and agriculture output.
Dr. Kishti Sen explained that there is more growth potential in tourism despite challenges such as room shortages and tighter financial conditions in source markets. He highlighted additional growth opportunities in sectors like wholesale and retail, construction, agriculture, and mining.
“Taken together, GDP growing by 3.4 percent this year is achievable in our view,” Dr. Sen said. He mentioned that while stronger growth is expected later this decade, driven by reinforced tourism, there are still potential growth areas to consider in the present.
Stronger growth is anticipated to emerge later this decade, supported by a flourishing tourism sector.