Fiji’s economy is set to grow by 3.0 percent in 2026, marking its fifth consecutive year of expansion, as detailed in the January 2026 Economic Review published by the Reserve Bank of Fiji (RBF). This predicted growth will be largely fueled by a 2.0 percent increase in visitor arrivals, though the bank has urged caution due to potential downside risks that could affect this outlook.
On the international stage, the RBF pointed out that rising geopolitical tensions and trade disputes are creating uncertainty that may impact the economies of Fiji’s key trading partners. These global challenges could lead to increased imported inflation, decreased tourism demand, and lower remittance inflows to Fiji.
Domestically, the review identified several potential challenges, including the likelihood of electricity tariff hikes, a cautious approach from investors in light of the upcoming national elections, and the persistent threat of natural disasters, all of which could hinder economic progress.
Despite these concerns, the RBF reported a broadly positive economic activity in 2025, with the tourism sector outperforming earlier expectations. Visitor arrivals surged to a record high of 986,367 by the end of the year, reflecting a 0.3 percent increase compared to previous forecasts predicting no growth. This significant uptick was attributed to a rise in arrivals from the United States (up 9.6 percent), Continental Europe (7.4 percent), Pacific Island countries (3.7 percent), and the United Kingdom (12.7 percent), despite declines from traditional sources such as New Zealand and Australia.
Moving forward into 2026, the RBF emphasized the importance of closely monitoring both global and domestic risks to maintain the momentum of Fiji’s economic growth. The optimism surrounding tourism is a bright spot, fostering hope for ongoing recovery and resilience in the face of challenges.
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