Fiji is projected to experience significant growth following its economic recovery from the Covid-19 pandemic, particularly with a resurgence in tourism and related sectors in the medium term. The National Development Plan for 2025-2029 and Vision 2050, launched recently in Suva, anticipates growth rates of 2.8 percent in 2024 and 3 percent in both 2025 and 2026.
However, the report highlights that there are increased risks due to the unstable global economy, rising global commodity prices, heightened business costs, and a loss of skilled domestic workers. The labor market remains competitive, as demand for workers rises alongside economic activity while emigration continues to increase.
Inflation and foreign reserves are expected to remain stable in the short to medium term, though there are notable risks affecting external balances. The plan aims to reinforce macroeconomic stability by reducing the trade deficit in the balance of payments, achieving price stability through wise monetary and fiscal practices, and improving fiscal conditions with a careful expenditure strategy aligned with revenue and debt plans.
The National Development Plan emphasizes that monetary policy will prioritize maintaining low and stable inflation alongside sufficient foreign reserves. Additionally, the plan includes efforts to uphold Fiji’s territorial integrity, establish the country as a regional hub, and ensure responsible engagement in bilateral, regional, and multilateral cooperation to foster trade and investment.
The sugar industry is also set to be revitalized through various initiatives, including the implementation of cogeneration projects, the development of climate-resilient cane varieties, investment in research and development to attract youth into sugar farming, and efforts to improve quality standards to meet international requirements. The plan aims to promote intercropping, high-value product diversification, and the expansion of export markets.