Fiji is projected to experience significant growth as the economy recovers from the impacts of the Covid-19 pandemic, particularly with an anticipated resurgence in tourism and related sectors in the medium term. According to the National Development Plan for 2025-2029 and Vision 2050, which was unveiled this week in Suva, growth is expected to reach 2.8 percent in 2024 and 3 percent in 2025 and 2026.
However, the report highlights that potential risks remain, influenced by a fragile global economy, rising commodity prices, escalating business costs, and the emigration of skilled workers domestically. The labor market is becoming increasingly competitive, with a strong demand for workers driven by economic growth alongside significant worker departures.
Inflation and foreign reserves are forecasted to remain within a stable range in the short to medium term, although there are notable concerns regarding external balance vulnerabilities. The focus during the plan period will be on enhancing macroeconomic stability by reducing the trade deficit in the balance of payments, achieving price stability through careful monetary and fiscal policies, and improving the fiscal situation with a more refined spending strategy that aligns with revenue and debt considerations.
The National Development Plan emphasizes a monetary policy aimed at keeping inflation low and maintaining sufficient foreign reserves. Additionally, the sovereignty aspect will involve protecting Fiji’s territorial integrity, positioning Fiji as a regional hub, and promoting effective participation in bilateral, regional, and multilateral initiatives to boost trade and investment.
In terms of the sugar industry, there are plans to enhance the sector through various initiatives, including implementing cogeneration projects, developing climate-resilient sugarcane varieties, engaging in research and development, attracting young people to sugar farming, improving quality and standards to meet international requirements, promoting intercropping, advancing into higher-value products, and expanding export markets.