The Reserve Bank of Fiji has reported a stronger-than-expected economic performance for the country in 2025, reflected in its recently released Financial Stability Review. With an economic growth rate of 3.4 percent, Fiji has seen broad-based improvements across vital sectors, notably buoyed by a resurgence in tourism.
The recovery of visitor numbers has significantly supported growth in hospitality, transport, and associated services, which has, in turn, positively affected employment rates and household incomes. Domestic demand remains robust, bolstered by rising incomes, steady remittance flows, and sustained government spending.
Key sectors such as construction and retail have also benefited from ongoing infrastructure investments and healthy consumer demand, while the forestry and logging sector’s improved performance has contributed further to overall economic activity. Fiscal measures from the 2025–2026 National Budget have played a significant role in fostering economic momentum and strengthening confidence within the economy.
Remarkably, inflation has remained under control throughout the year, with the annual headline rate reaching zero percent by December 2025. The Reserve Bank emphasized that this stability in prices, along with comfortable foreign reserve levels, has fostered currency stability and reinforced investor confidence.
The Review highlighted that the combined forces of external demand from tourism and internal demand bolstered by fiscal stimulus have worked effectively together to support economic performance. However, while the domestic outlook appears encouraging, the Reserve Bank did issue a cautionary note regarding potential risks, calling for prudent macroeconomic management and ongoing vigilance.
In addition, the central bank pointed out the importance of strong oversight within the financial sector—particularly banking—to ensure stability and resilience against global uncertainties. Overall, the positive trajectory of Fiji’s economy, framed by resilience and momentum, holds the promise for continued balanced growth in the years to come.
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