Fiji’s economy is projected to grow by 2.8 percent in 2024, as outlined in the National Development Plan (NDP). The report anticipates a growth rate of 3 percent for both 2025 and 2026, driven primarily by a recovery in the tourism sector, which is crucial to the nation’s economy.
However, this optimistic forecast is accompanied by notable challenges. The NDP highlights that the labor market remains tight, with rising demand for workers due to increased economic activity and higher rates of emigration among the workforce. While inflation and foreign reserves are expected to remain within a manageable range short- to medium-term, significant risks to external balance persist.
To enhance macroeconomic stability during the plan’s timeframe, the government aims to reduce the trade deficit, achieve price stability through careful monetary and fiscal policies, and strengthen its fiscal position with a strategic approach to expenditures that align with revenue and debt management.
The plan also mentions that private sector growth has often been hampered by stringent regulations, bureaucratic complexities, and elevated operational costs. Moreover, government involvement in various economic sectors through state-owned enterprises has occasionally limited private investment opportunities.
Enhancing private sector investment across all economic sectors and adjusting the government’s role in economic activities could potentially foster more space for private investment, improve efficiency and productivity, and ultimately drive Fiji’s economic growth forward.