Fiji is projected to witness significant growth as it recovers from the economic impacts of the Covid-19 pandemic, particularly with a resurgence in tourism and associated sectors. According to the National Development Plan for 2025-2029 and Vision 2050, which was launched this week in Suva, the economy is expected to grow by 2.8 percent in 2024 and 3 percent in 2025 and 2026.
However, the report also highlights that risks are on the rise due to an unstable global economy, escalating commodity prices, higher costs of business operations, and a depletion of skilled domestic workers. The labour market is currently tight, with increasing demand for workers stemming from economic activity and a growing trend of emigration among skilled personnel.
Inflation and foreign reserves are anticipated to remain within a manageable range in the short to medium term, though significant risks to the external balance persist. Throughout the duration of the plan, priorities will include enhancing macroeconomic stability by reducing the trade deficit in the balance of payments, achieving price stability via sound monetary and fiscal policies, and improving the fiscal situation through careful expenditure strategies aligned with revenue and debt management.
The National Development Plan emphasizes the importance of maintaining low and stable inflation as well as ensuring adequate levels of foreign reserves. Additionally, national sovereignty will focus on protecting Fiji’s territorial integrity, positioning the country as a regional hub, and actively engaging in bilateral, regional, and multilateral efforts to boost trade and investment.
Furthermore, the sugar industry is set to benefit from the introduction of cogeneration projects, the development of climate-resilient cane varieties, research and development initiatives, and efforts to attract younger individuals to sugar farming. Enhancements in quality standards to meet international demands, promotion of intercropping, diversification into higher-value products, and expansion into new export markets are also key focus areas.