Fiji’s economy is set to experience an influx of $600 million next year due to private investment, 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 investments, primarily in residential and non-dwelling construction, had been stagnating but are now beginning to rise. He pointed out that the lack of sufficient construction activities in residential and commercial sectors has contributed to a weakened private investment landscape.
However, Dr. Sen highlighted that the government’s commitment to engaging the private sector before implementing any policy or legislative changes is likely to bolster investor confidence. He suggested that with this assurance, existing projects that have already received approval could move forward, leading to an anticipated increase in investment.
He predicted that the economy could see an additional $600 million in new spending next year, revitalizing the construction sector. According to Dr. Sen, the construction industry has a significant multiplier effect, benefiting various other sectors within the economy.
Increased investor confidence, he stated, could position the private sector to enhance economic activity, with private investment expected to play a predominant role in economic growth during the latter half of this year.
Looking ahead to 2025, Dr. Sen emphasized that private investment would create jobs and increase household spending power, supported by ongoing public infrastructure developments, such as roads and ports. He concluded that the domestic economy remains resilient, with private investment poised to be the key driver of growth moving into 2025 and 2026.