Fiji’s economy is set to see an influx of $600 million in private investment next year, which is expected to play a significant role in local economic growth through 2026. Dr. Kishti Sen, ANZ’s senior economist for the Pacific region, noted that private investment in residential and non-residential buildings has been stagnant but is now beginning to recover.
Dr. Sen emphasized that there has been insufficient construction activity, including residential properties and commercial spaces such as offices and retail outlets, which has contributed to weak private investment in the past. However, he believes the government’s commitment to collaborating with the private sector on policy and legislative changes will enhance investor confidence.
With this assurance, Dr. Sen predicts that investors will proceed with projects that are already approved. He estimates an additional $600 million in new investments will flow into the economy next year. The construction sector, known for its strong multiplier effect, is expected to benefit various industries as new investments materialize, which will positively impact economic growth.
Moreover, Dr. Sen anticipates that enhanced private sector confidence will lead to increased economic activity, with private investment becoming a more significant driver of growth in the latter half of this year. He projects that the positive effects of this investment will be felt by 2025, creating jobs and increasing household spending power.
In conjunction with public infrastructure projects like roads, ports, and jetties, Dr. Sen predicts a robust year for the construction sector in 2024, predominantly fueled by private investment. He asserts that the domestic economy is performing well, with private investment serving as the key driver for Fiji’s economic trajectory into 2025 and 2026.