Municipal and General Elections anticipated later this year are poised to significantly influence Fiji’s policy direction, potentially introducing an element of uncertainty into the country’s economic outlook, according to Westpac’s February 2026 report, *Westpac Wave: Fiji Economic Update and Outlook*.
The report highlights that while Fiji is beginning 2026 from a relatively steady position, the lack of confirmed election dates and the potential for major policy shifts could impact investor confidence and key economic decisions. Despite these uncertainties, Westpac forecasts an economic growth rate of 3.3 percent for 2026. However, they caution that the challenges of election-related unpredictability, alongside rising global geopolitical tensions and economic fragmentation, could complicate the landscape for policymakers.
Westpac also indicates that an expansionary fiscal policy leading up to the elections is expected to provide short-term growth support, buoyed by sustained momentum in tourism, steady consumer demand, and robust remittance inflows. Nonetheless, the bank warns that maintaining private sector investment will necessitate policy stability beyond the election period, along with enhancements in the ease of doing business and a reduction in bureaucratic hurdles.
Furthermore, the report stresses the importance of a stronger commitment to economic diversification as Fiji navigates both domestic political uncertainties and an increasingly volatile global environment. This proactive approach could not only mitigate risks but also foster resilience within the economy as it moves forward.
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