Another bank is optimistic about Fiji’s growth prospects, offering a positive outlook for the country’s economy in the near to medium term. This is a contrast to previous forecasts that painted a less favorable picture.
Westpac, which had previously downgraded its growth forecast for Fiji to 2.5 percent for 2024 due to “high inflation, population decline from emigration, underperforming primary sectors, declining construction activity, and regulatory issues,” is likely to revise its position in its upcoming quarterly report. According to Justin Smirk, the director and senior economist at Westpac, there have been “stronger than expected sentiments and growth in tourism.”
Smirk commented during a media conference, “The tourism numbers are much stronger than anticipated, indicating further growth in that sector.” He acknowledged some negative sentiments surrounding economic activities but emphasized that overall tourism growth has surpassed expectations. He noted that there have been positive developments among their clients, leading to improved feedback regarding economic conditions.
While Westpac had maintained its conservative 2.5 percent projection in July—lower than the Reserve Bank of Fiji’s official estimate of 2.8 percent—ANZ had projected a growth rate of 3.4 percent for this year. This was prior to Fiji Airways announcing a new route to Dallas, which is regarded as a potential catalyst for economic growth in Fiji.
“This new route is prompting us to reevaluate our forecast. It’s definitely a significant positive,” Smirk stated. He added that the actual impact would depend on the speed of capacity expansion to accommodate the expected influx of visitors.
He cautioned that capacity constraints could limit growth potential, noting, “The size of the American market is immense, and it’s up to us to determine how much we can grow, but it certainly presents a good opportunity.”