The Fijian economy is projected to grow by 3.2 percent this year, a slight adjustment from the previously estimated 3.4 percent. This revision comes from the Reserve Bank of Fiji’s Macroeconomic Committee, led by Chair Ariff Ali, after a thorough evaluation of economic trends.
While domestic indicators have shown generally positive results in the first five months, one area of concern is visitor arrivals, which are now expected to hold steady rather than increase by the anticipated four percent. This change reflects updated industry feedback and trends, leading to a forecast of flat visitor numbers for 2025.
On a more positive note, government expenditure is playing a significant role in boosting demand within the economy. Expectations are that the upcoming National Budget will continue to stimulate growth. Domestic consumption remains strong, backed by accommodative monetary policies that encourage investment activity.
Ali also indicated that despite global economic challenges, particularly a slowdown in international markets, the long-term growth trend for Fiji is expected to stabilize around three percent by 2026 and 2027, primarily driven by activity in the service sectors alongside contributions from agriculture and manufacturing.
In previous assessments, significant improvements in visitor numbers and domestic factors such as consumer spending were noted, reinforcing the optimism surrounding Fiji’s economic outlook. Continued government spending and a focus on private investment suggest potential for sustained growth, even as the tourism sector faces short-term difficulties.
This prevailing sentiment highlights the resilience of Fiji’s economy, showing promise for ongoing recovery and empowerment across various sectors. With adequate planning and policy support, Fiji could navigate current challenges and emerge stronger in the coming years.
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