Fiji’s economy is positioned well, according to Dr. Kishti Sen, ANZ’s Pacific economist. He noted that the domestic economy is performing “quite well,” with a projected GDP growth of 3.4 percent for the year. Dr. Sen indicated that the primary driver of economic growth moving into 2025 and 2026 will be private investment.
While he praised the recovery in international visitor arrivals after the pandemic, which saw Fiji quickly returning to 2019 levels, he pointed out that the contribution of tourism to GDP growth is expected to decline. Dr. Sen explained that while the economy will not experience a sharp downturn, the tourism sector’s impact on growth will start to slow.
He mentioned that accommodation capacity in Fiji is already fully utilized, indicating that tourism levels will stabilize. However, he expressed excitement about the prospects for the domestic economy and anticipated an increase in consumer demand in the latter half of the year, despite current softness due to many Fijians relocating abroad for extended periods.
Dr. Sen predicted that retail sales would improve as wage inflation begins to take effect, boosting household spending power. He expressed confidence that private investment would rise next year, spurred by government assurances on legislation and policy, resulting in job creation and enhanced consumer spending.
In summary, Dr. Sen believes that sustained consumer demand, increasing private investment, and government expenditure will contribute to a robust domestic economy in Fiji.