Fiji’s Economic Boom: A $716 Million Investment Surge

Deputy Prime Minister and Finance Minister Professor Biman Prasad announced the launch or completion of 49 projects worth $716 million, facilitated by Investment Fiji. Speaking at a Rotary Club Luncheon, he emphasized that this achievement demonstrates the Coalition Government’s commitment to fostering a favorable investment climate in the nation.

Prasad noted that various investment projects are in different phases of development. Currently, 39 projects valued at approximately $1.3 billion are under construction, while 22 projects valued at around $1.5 billion are either in the pre-development phase or awaiting approval. Additionally, 27 projects estimated at $2.3 billion are in the conceptual stage.

He shared that there are 52 projects categorized as Foreign Direct Investment, totaling $3.5 billion, alongside 85 Domestic Direct Investments worth $2.2 billion. The Ministry of Finance reported a significant rebound in the domestic economy, which grew by 20 percent in 2022 after three years of decline.

This recovery was attributed to stronger-than-expected performances in tourism and related sectors, including wholesale and retail, manufacturing, finance, and agriculture, along with improved tax collections.

“The Fijian economy has strongly bounced back from the pandemic-related downturn in 2020 and 2021, with GDP surpassing pre-pandemic levels in 2023,” Prasad stated. He added that Fiji’s economic recovery has outpaced that of other countries reliant on tourism, largely due to a substantial resurgence in the sector, with visitor arrivals in 2023 reaching an all-time high of 929,740—4 percent higher than the previous record of 894,389.

In 2023, the economy recorded a growth rate of 7.5 percent. Looking ahead, the government aims to restore fiscal sustainability by reducing debt, enhancing fiscal transparency and accountability, and ensuring targeted spending. Prasad noted a decrease in the budget deficit from seven percent of GDP in 2022-2023 to approximately four percent in the recent budget, with an estimated deficit of 4.5 percent expected in the 2024-2025 budget. He forecasted a debt-to-GDP ratio of 77.8 percent by July 2025.

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