Inflation in Fiji remained at zero percent in December, consistent with trends observed earlier in the year, according to the Reserve Bank of Fiji’s December Economic Review for 2025. The report highlights that while prices for certain goods such as alcohol, tobacco, Yaqona, and hospitality saw increases, these were counterbalanced by declines in transport, fuel, and various household goods.
Consumer activity in Fiji has shown resilience, bolstered by lower VAT rates, increased wages, and consistent remittances from overseas. Despite this positive trend in consumption, the country experienced a widening of its merchandise trade deficit by 10.1 percent, with imports outpacing exports. Key imports included machinery, vehicles, and manufactured goods, while exports were primarily driven by gold, woodchips, and kava. However, the review points out that declines in the export of sugar, bottled mineral water, and re-exported fuel have somewhat mitigated the overall export performance.
Investment and construction data signal an optimistic outlook, with increases in the value of building certificates and work completed, as well as a rise in new loans for household and real estate purposes. The conditions in the banking sector remain favorable, facilitating credit growth and sustaining low lending rates.
In light of these developments, the Reserve Bank of Fiji emphasizes the importance of remaining vigilant. It warns that external shocks and domestic structural challenges could pose risks to future economic stability. Nonetheless, the current economic indicators promote a sense of cautious optimism for Fiji’s economic resilience moving forward.
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