Fiji’s economy is performing well, according to Dr. Kishti Sen, ANZ’s Pacific economist. He indicated that the domestic economy is stabilizing, with a projected GDP growth of 3.4 percent for this year.
Dr. Sen stated that private investment will be the primary engine for economic growth as the country moves into the second half of 2023 and into the following years. He praised the significant recovery in international tourist arrivals following the pandemic, which allowed Fiji to return to 2019 visitor levels. However, he remarked that the tourism sector’s impact on GDP growth would begin to diminish.
“The economy is not going to fall off a cliff; rather, the contribution of tourism to GDP growth is expected to slow down,” Dr. Sen shared during a media roundtable at ANZ’s headquarters in Suva. He observed that Fiji’s accommodations are currently at capacity.
Dr. Sen expressed excitement about the domestic economy’s performance, noting some decline in consumer demand due to many Fijians relocating abroad for work. Nevertheless, he remains optimistic that retail sales will improve in the latter half of the year.
He explained that anticipated wage increases would bolster consumer demand and support household spending. Dr. Sen expects a rise in private investment next year, as investors are positioned to make commitments with the government’s stable legislative and policy environment.
He believes that increased private investment will generate jobs and enhance household purchasing power. “With consumer demand stable, private investment rising, and increased government spending, I think the domestic economy is in a favorable position,” he concluded.