Fiji’s economy is expected to see a significant boost next year with an additional $600 million generated from private investments, which will play a vital role in local economic growth through 2026.
Dr. Kishti Sen, ANZ’s senior economist for the Pacific region, noted that private investment, particularly in residential and non-dwelling construction, has been stagnant for some time but is now beginning to show signs of recovery.
He remarked, “We haven’t really made substantial progress in terms of construction, whether it’s residential buildings or non-dwelling projects such as office spaces, retail outlets, and warehouses. Consequently, private investment has been relatively weak.”
However, Dr. Sen believes that the government’s commitment to collaborating with the business sector before implementing any policy or legislative changes will enhance investor confidence.
“With this assurance, I anticipate that investors will move forward with projects that are already approved and ready for execution,” he explained.
He forecasts that the expected new investments will provide a much-needed injection into the economy. “When new investments materialize, it leads to construction activities, which have a significant economic multiplier effect, benefiting various other industries linked to the construction sector. This is why we anticipate robust economic growth in the coming year.”
Increased private sector confidence is predicted to further stimulate economic activity, with Dr. Sen suggesting that private investment will play a more prominent role in economic growth starting in the second half of this year.
He added that substantial private investments in 2025 would create jobs and enhance household spending power.
In combination with government-funded infrastructure projects such as roads, ports, and jetties, he declared, “Next year looks promising for the construction sector, primarily driven by private investment.”
Dr. Sen concluded that the domestic economy is resilient, with private investment poised to be the central factor in economic progress from the latter half of this year into 2025 and 2026.