Fiji’s Economic Renaissance: Unveiling $716 Million in New Investments

Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that 49 projects, totaling $716 million, have either started or completed operations with the support of Investment Fiji.

Speaking at a Rotary Club Luncheon, Professor Prasad emphasized the Coalition Government’s commitment to fostering a conducive investment climate in the nation. This commitment is showcased by the significant investment projects currently at various stages of development.

He noted that there are 39 projects, valued at approximately $1.3 billion, currently under construction. Additionally, 22 projects worth around $1.5 billion are in the pre-development stage or awaiting approval, while 27 projects valued at $2.3 billion are still at the conceptual phase.

Professor Prasad highlighted that out of 52 projects valued at $3.5 billion, they are classified as Foreign Direct Investment, and there are 85 domestic projects valued at $2.2 billion.

According to the Ministry of Finance, the domestic economy experienced a remarkable recovery, growing by 20 percent in 2022 after three consecutive years of downturn. This broad-based recovery was primarily driven by an unexpected surge in the tourism sector along with gains in wholesale and retail, manufacturing, finance, and agriculture, along with improved tax collections.

“The Fijian economy has rebounded strongly from the pandemic challenges of 2020 and 2021, with GDP surpassing pre-pandemic levels in 2023,” stated Professor Prasad. He added that Fiji’s economic recovery has been the fastest among other tourism-dependent nations, largely due to a resurgence in the tourism sector, which saw visitor arrivals exceeding expectations.

Visitor numbers for 2023 reached a record high of 929,740, surpassing the previous peak of 894,389. The economy recorded a growth rate of 7.5 percent in 2023.

Looking ahead, Professor Prasad reaffirmed the government’s commitment to restoring fiscal sustainability, decreasing debt, enhancing fiscal transparency and accountability, and ensuring efficient and targeted spending. He mentioned a reduction in the budget deficit from seven percent of GDP in the 2022-2023 budget to about four percent in the previous budget, with an anticipated deficit of 4.5 percent for the 2024-2025 budget.

He concluded by stating that the debt-to-GDP ratio is expected to reach 77.8 percent by July 2025.

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