Westpac Fiji has updated its growth forecast for Fiji from 2.5 percent to 3.0 percent for the current financial year. Senior economist Shamal Chand expressed confidence in the country’s economic prospects during their quarterly economic update released recently, indicating that Fiji is on track for another year of strong growth.
Chand noted that preliminary indicators suggest impressive activity in the tourism sector, along with robust performance in construction, investment, and private sector credit growth. He credited the revision to increased tourism activities, promising investment and construction opportunities, a rebound in manufacturing, a favorable trend in wholesale and retail sales, and the fiscal stimulus outlined in the 2024-2025 National Budget.
“Since the provisional growth figures for 2023 were lower than expected, this has led to an upward revision of this year’s growth rate,” said Chand. He anticipates that economic growth will stabilize at 3.4 percent from 2025 onwards, consistent with historical averages.
Chand highlighted several key indicators provided by the Reserve Bank of Fiji (RBF), showing substantial growth up to August this year. These include:
– An 11.0 percent increase in electricity production and a 10.1 percent rise in consumption;
– A 30.3 percent surge in gold production;
– An 18.3 percent increase in cane production as harvesting season commenced;
– A 6.6 percent gain in cement production and a 7.6 percent rise in cement sales;
– A 6.8 percent growth in domestic credit; and
– An 11.6 percent increase in private sector credit, reflecting a strong investment appetite in the market.
“This gives us further confidence in upgrading our economic outlook for this year. With another quarter remaining, we anticipate entering 2025 on a positive trajectory, and the current momentum is expected to support our growth into the new year,” Chand stated. He added that several major investment projects are in the pipeline, alongside expanding tourism sector capacities, which, coupled with declining resident departure numbers, will be crucial for achieving growth rates over 3 percent in the medium term.