Fiji is expected to see widespread economic growth as a result of recovery from the Covid-19 pandemic and a resurgence in tourism and related sectors in the coming years. Projections indicate growth rates of 2.8 percent in 2024 and 3 percent in 2025 and 2026, according to the National Development Plan 2025-2029 and Vision 2050, which were launched this week in Suva.
However, the report warns of increasing risks due to a fragile global economy, rising global commodity prices, escalating business costs, and a decline in domestic skilled workers. Labor market conditions are noted to be tight, as demand for workers continues to rise amid growth in economic activities, coupled with increased emigration of workers.
While the outlook for inflation and foreign reserves is anticipated to remain stable in the short to medium term, significant risks to external balance persist. The plan emphasizes the need to strengthen macroeconomic stability by reducing the trade deficit in the balance of payments, achieving price stability through sound monetary and fiscal policies, and enhancing the fiscal position through careful expenditure strategies aligned with revenue and debt policies.
The National Development Plan indicates that monetary policy will be aimed at maintaining low and stable inflation along with sufficient foreign reserves. Additionally, Fiji’s sovereignty will focus on protecting its territorial integrity, promoting the nation as a regional hub, and actively engaging in bilateral, regional, and multilateral cooperation to boost trade and investment.
The sugar industry will be strengthened through initiatives like cogeneration projects, development of climate-resilient cane varieties, research and development efforts, and efforts to engage youth in sugar farming. There will also be a focus on improving quality and adherence to international standards, promoting intercropping, exploring higher value products, and expanding export markets.