The Reserve Bank of Fiji (RBF) has issued a caution regarding the potential hurdles that could affect the nation’s economic growth in 2025. In its latest assessment, the RBF highlighted a combination of global and domestic factors that may dampen the projected economic growth rate of 3.0 percent for the year.
Among the global risks, the RBF pointed out that rising geopolitical tensions, particularly in the Middle East, may lead to increased prices for commodities worldwide. Additionally, Fiji is facing challenges from the ongoing cyclone season, which poses threats to local economic activities. Further complicating the outlook, the introduction of visa bond requirements by the United States could deter some travelers, along with the looming possibility of interest rate hikes from key trading partners.
Travel advisories, particularly the one linked to the HIV outbreak issued by the Department of Foreign Affairs and Trade (DFAT), also stand to affect visitor arrivals, contributing to overall economic concerns.
In contrast, the report noted a positive development in Fiji’s remittance landscape. Inward remittances saw a 2.6 percent increase in 2025, totaling $1.36 billion, bolstered by a significant 16.7 percent rise in personal transfers facilitated through mobile networks. Outward remittances also experienced growth, climbing by 7.9 percent to $539.9 million, driven by increased personal transfers from non-residents and emigrants, including withdrawals from superannuation.
While net remittances saw a slight decline of 0.6 percent compared to the previous year, the overall trends indicate resilience in remittance flows, potentially providing a buffer against the broader economic challenges facing Fiji. The evolving dynamics present both challenges and opportunities, highlighting the interconnected nature of global events and local economies.
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