The Fijian economy has been identified as being at a pivotal juncture, or an inflexion point, according to ANZ Pacific Economist Kishti Sen. He notes that the country has shown remarkable recovery from the pandemic-induced recession, highlighting three potential paths for future economic direction: continued rapid growth, stabilization, or regression.
Sen reports that he can confidently rule out the possibility of an economic contraction, as the fundamental drivers of Fiji’s economy remain strong. Currently, economic activity has stabilized, with growth expected in the range of two to three percent, aligning with pre-pandemic levels. This forecast suggests that Fiji could see a GDP growth of 2.8 percent this year, followed by 2.6 percent in 2026.
Tourism, a vital sector for Fiji’s economy, has largely rebounded but is facing capacity constraints and uncertainties in key markets, leading to a stabilization in international visitor numbers. The economist believes that although there might be challenges in some businesses, the broader landscape is looking hopeful due to emerging private sector investment. He anticipates that as this investment broadens, it will help many businesses recover and stimulate economic activity.
Looking ahead, Sen is optimistic about the return of international tourism as a significant growth driver in 2027, coinciding with new capacity coming online. He emphasizes the potential for new industries to emerge, which will further enhance the economy.
In light of these positive projections, it is encouraging to note that Fiji’s economic recovery appears to be on a steady path, bolstered by the resilience of key sectors and the potential for private investment growth to contribute to job creation and increased household spending. This optimistic outlook offers hope for sustained economic vitality in the future, even as the country navigates current challenges.
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