Fiji’s economy is set to experience an additional injection of $600 million next year through private investments, which are expected to play a significant role in driving local economic growth through 2026. Dr. Kishti Sen, the senior economist for the Pacific region at ANZ, noted that private investments, particularly in residential and non-residential construction, have been lagging but are now beginning to pick up momentum.
Dr. Sen indicated that the stagnation in construction, including residential areas and commercial spaces such as offices, retail shops, and warehouses, has led to weak private investment levels. However, he expressed optimism that the government’s commitment to engaging the business community prior to any policy or legislative changes will enhance investor confidence.
With such assurances in place, Dr. Sen believes that pending approved projects are likely to move forward, triggering a wave of new investments. He projected that approximately $600 million in new expenditures will flow into the economy next year. This surge in construction activity, which has a high economic multiplier effect, is anticipated to benefit various sectors interconnected with construction.
As private sector confidence increases, it is expected that private investments will take center stage in stimulating economic activity. Dr. Sen anticipates that private investment will gain traction in 2025, creating new job opportunities and boosting household purchasing power. Alongside government-funded infrastructure projects like roads, ports, and jetties, he predicts a promising year for the construction industry, predominantly driven by private investment.
Overall, Dr. Sen emphasized that the domestic economy is resilient and that private investment will be the key driver of growth moving into the latter half of this year and into 2025 and 2026.