Fiji is expected to see widespread economic growth as it continues to recover from the Covid-19 pandemic, with a rebound in tourism and related sectors projected for the medium term. According to estimates from the National Development Plan 2025-2029 and Vision 2050, launched this week in Suva, the economy is forecasted to grow by 2.8 percent in 2024 and 3 percent in 2025 and 2026.
The report, however, highlighted that there are increased risks due to the fragile global economy, rising commodity prices, higher operational costs, and a loss of skilled workers domestically. It pointed out that the labor market remains tight, with growing demand for workers reflecting increased economic activity alongside heightened emigration.
Inflation and foreign reserves are anticipated to remain stable in the short to medium term, although there are significant risks to the external balance. The plan aims to boost macroeconomic stability by reducing the trade deficit in the balance of payments, achieving price stability through careful monetary and fiscal policies, and improving the overall fiscal situation with a more effective expenditure strategy aligned with revenue and debt plans.
The National Development Plan emphasizes maintaining low and stable inflation and ensuring adequate foreign reserves. Furthermore, Fiji’s sovereignty will focus on protecting its territorial integrity, promoting itself as a regional hub, and actively participating in trade and investment cooperation on various levels.
In addition, the sugar industry is set to improve through initiatives like cogeneration projects, the development of climate-resilient cane varieties, research and development efforts, attracting younger individuals to sugar farming, enhancing quality and standards to meet international demands, promoting intercropping, developing higher-value products, and expanding export markets.