Fiji’s economic growth is projected to rise by 2.8 percent in 2024, as outlined in the National Development Plan (NDP). The plan also forecasts a growth rate of 3 percent for both 2025 and 2026. This expected growth is largely attributed to the resurgence of the tourism sector, which plays a crucial role in Fiji’s economy.
Despite this positive outlook, significant challenges remain. The NDP notes that labor market conditions are tight, with increasing demand for workers due to economic activity and heightened emigration rates. While the projections for inflation and foreign reserves are expected to remain stable in the short to medium term, there are notable risks to the external balance.
Throughout the NDP’s timeline, efforts will be focused on enhancing macroeconomic stability by reducing the trade deficit in the balance of payments, achieving price stability through careful monetary and fiscal policies, and improving fiscal health via strategic expenditure management aligned with revenue and debt strategies.
The plan underscores the need for private sector growth, stating that heavy regulatory burdens and high business costs have hindered private investment. Additionally, the government holds significant involvement in various economic sectors through state-owned enterprises, which can sometimes limit private sector investment.
The NDP emphasizes that promoting private sector investment across all economic sectors and reevaluating the government’s role in economic activities could create new opportunities for investment, enhance efficiency and productivity, and drive Fiji’s economic growth to new heights.