Remittance growth, a significant driver of consumer demand in Fiji, is showing signs of plateauing as destination countries tighten immigration policies for permanent residency. According to Kishti Sen, a senior Pacific economist with ANZ Group, these changes may place a strain on future remittance flows, which could decline slightly in 2026.
Mr. Sen highlighted that while Fiji has experienced substantial growth in remittances, with figures rising from below $500 million pre-pandemic to over $1,200 million, the current trend indicates a reversal. He noted that the reliance on remittances to fuel consumer demand may prove risky as this critical source of household income begins to wane.
Despite these challenges, Sen expressed optimism regarding job growth in Fiji’s private sector, which he believes can provide a buffer against decreasing remittance inflows. He is hopeful that increased business investment in the country could lead to more hiring, positively impacting consumer demand.
The economist pointed out that recent data shows a significant decline in long-term departures to countries such as Australia and New Zealand, with numbers falling 38% in the year leading up to June 2025. This decline, now 51% below the peak of 2023, reflects the impact of tightened immigration pathways. Additionally, the Reserve Bank of Fiji’s report for September 2025 indicates that personal remittances for the year surpassed $1 billion, marking a 4.3% annual increase.
Mr. Sen cautioned that if major new projects do not materialize, consumer demand in Fiji could soften in the coming years. However, the gradual recovery in employment due to stronger private sector investment presents a hopeful outlook for the economy. As the country navigates these changes, the emphasis on fostering job growth may pave the way for greater economic resilience despite the challenges facing remittance inflows.
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