Fiji’s economy is poised to exceed official projections, according to Acting Prime Minister and Finance Minister Professor Biman Prasad. Speaking on The Lens@177, he highlighted that the nation is experiencing a robust economic rebound, with further acceleration anticipated by 2025. The coalition government’s reforms have stabilized public finances, increased confidence, and spurred investment, creating a pathway for continuous economic growth.
In the 2025-26 budget, the government has sustained its progressive momentum, successfully reducing the debt-to-GDP ratio below 80 percent and cutting the deficit from 15 percent to 12.5 percent. Remarkably, Fiji also generated more revenue than forecasted, surpassing expectations by approximately $185 million. Indicators such as strong consumption, vehicle sales, and Value Added Tax (VAT) receipts signal healthy economic growth, increased social support, and rising incomes.
The outlook for GDP growth is promising, with hopes of exceeding the 3.2 percent forecast for 2025. Professor Prasad believes the ongoing investments will create more jobs, generate better income, and enhance government revenue. The government’s national development plan is not seen as an unattainable goal but as a practical pathway toward achieving high-income status by 2050. Key drivers include new investor incentives, public-private partnerships in utilities, and an aggressive tourism expansion.
Fiji has also experienced a remarkable trend of seven consecutive months of decreasing or negative inflation, a testament to the effectiveness of cost-cutting measures. The Reserve Bank and Bureau of Statistics data depict a sharp decline in inflation, demonstrating the success of government initiatives like duty and VAT reductions. A collaborative task force has been effective in ensuring that these savings are passed on to the people.
The tourism sector, defying initial predictions of a downturn, is booming with demand surpassing supply. This growth is driving investments across the country and spreading benefits beyond traditional resorts. The government is promoting infrastructural development through tax incentives, supporting diverse tourism projects such as village tours and highland access. Large-scale projects, such as the $400 million tourism development in Bua and airport upgrades, affirm Fiji’s position as an attractive tourism destination.
Overall, the government’s strategic fiscal management, investment in key sectors, and favorable policy framework are paving the way for an economically vibrant future for Fiji. The challenges posed by global risks remain, but Fiji’s anticipated economic growth and development underscore a path towards sustainable progress and improved quality of life for its citizens.
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