Westpac Fiji has adjusted its growth forecast for the nation, increasing it from 2.5 percent to 3.0 percent for the current financial year. This announcement was made by senior economist Shamal Chand in their latest quarterly economic update released yesterday. He emphasized that Fiji is on track for another year of strong economic growth.
Chand attributed this positive revision to a surge in tourism, promising investment opportunities, a rebound in manufacturing, favorable retail sales, and fiscal stimuli outlined in the 2024-2025 National Budget. He noted that the provisional growth figures for 2023 fell short of expectations, thus prompting the upward adjustment for this year.
Looking into the medium term, Chand predicted economic growth would stabilize at 3.4 percent starting in 2025, which corresponds with historical averages. He highlighted several key indicators from the Reserve Bank of Fiji that demonstrated notable growth trends up to August of this year, including a significant rise in electricity production (11.0 percent), gold production (30.3 percent), and an 18.3 percent increase in cane production as the harvesting season commenced. Additionally, cement production and sales saw increases of 6.6 percent and 7.6 percent, respectively, while domestic credit growth stood at 6.8 percent and private sector credit rose by 11.6 percent, indicating robust lending and investment activity.
Chand expressed confidence in the upgraded economic outlook, noting that with just one quarter left in the year, Fiji is entering 2025 with strong momentum. He remarked that a few major investment projects are in the pipeline, along with the ongoing expansion plans for the tourism sector, which, supported by decreasing resident departure numbers, are expected to be critical in achieving a growth rate above 3 percent in the medium term.