Fiji’s economy is currently performing well, according to ANZ’s Pacific economist, Dr. Kishti Sen. He noted that the domestic economy is maintaining a strong position, with a projected GDP growth of 3.4 percent for this year.
Dr. Sen, who is based in Australia, identified private investment as the main driver of economic growth moving into the latter half of 2023 and into 2025 and 2026. He praised the swift recovery in international visitor numbers following the pandemic, which brought Fiji’s tourism back to 2019 levels, but added that the significant impact of tourism on GDP growth is expected to diminish.
“The economy will not decline sharply; however, the contribution of tourism to GDP growth will gradually decrease,” Dr. Sen stated during a media roundtable at the ANZ headquarters in Suva. He explained that Fiji’s accommodation capacity has already been reached.
While he expressed enthusiasm about the strength of the domestic economy and domestic demand, he acknowledged a recent dip in consumer spending due to a notable number of Fijians relocating abroad for at least a year. Nonetheless, he is optimistic that retail sales will increase in the latter half of the year, driven by anticipated wage inflation leading to improved consumer demand and household spending.
Dr. Sen also emphasized that as private investment grows in the coming year, it will stimulate job creation and enhance household purchasing power. He believes that with stable consumer demand, rising private investment, and increased government spending, Fiji’s domestic economy is well positioned for future growth.