Fiji’s economy is predicted to grow by 3.2 percent in 2025, a slight decrease from the previous projection of 3.4 percent, as reported by the Reserve Bank of Fiji’s Macroeconomic Committee. This adjustment reflects the ongoing impact of global trade tensions, geopolitical issues, and the slower growth outlook of Fiji’s trading partners.
Despite these challenges, domestic indicators have shown positive trends, particularly in areas aside from tourism. The Reserve Bank noted that government spending has significantly bolstered demand in the economy, and there are expectations that the upcoming National Budget will continue to support this growth. Consumption remains strong, bolstered by a favorable monetary policy that encourages investment.
However, there is a notable adjustment in the forecast for visitor arrivals. Initially expected to increase by 4.0 percent in 2025, arrivals are now projected to remain flat, aligning with recent industry feedback and trends.
Furthermore, various economic indicators, such as domestic VAT collections, employment rates, remittances, and bank credit, suggest notable growth and support the amended economic outlook. The previous reports had indicated the resilience of Fiji’s economic landscape, underscoring a robust services sector that remains crucial for continued growth, especially in light of consumer confidence and government initiatives.
As challenges from global factors loom, Fiji’s economic outlook remains cautiously optimistic, highlighting the resilience and adaptive capacity of its sectors. With continued strategic planning and investment focus, Fiji could navigate its challenges and achieve sustained economic performance in the coming years.
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