Fiji is projected to experience widespread economic growth as it recovers from the impacts of the Covid-19 pandemic, with significant rebounds expected in tourism and related sectors in the medium term. The forecast indicates growth rates of 2.8 percent in 2024 and 3 percent in both 2025 and 2026, as outlined in the recently launched National Development Plan 2025-2029 and Vision 2050 in Suva.
However, the report also warns of increasing downside risks due to the fragile state of the global economy, rising commodity prices, escalating business costs, and a diminishing pool of skilled domestic workers. Labor market conditions are reported to be tight, as the demand for workers rises in tandem with economic activity, which is further complicated by increased emigration of workers.
While inflation and foreign reserves are expected to remain within a comfortable range in the short to medium term, there are significant risks to the external balance. During the duration of the plan, the emphasis will be on enhancing macroeconomic stability by addressing the trade deficit in the balance of payments, achieving price stability through careful monetary and fiscal policies, and improving the fiscal position with a more strategic approach to expenditures aligned with revenue and debt management.
The National Development Plan highlights that monetary policy will focus on maintaining low inflation and ensuring sufficient foreign reserves. Additionally, the plan underscores the importance of safeguarding Fiji’s territorial integrity, positioning Fiji as a regional hub, and engaging responsibly in bilateral, regional, and multilateral cooperation to boost trade and investment.
Improvements in the sugar industry will be pursued through various initiatives such as implementing cogeneration projects, developing climate-resilient cane varieties, supporting research and development, attracting young people to sugar farming, enhancing quality standards to meet international requirements, promoting intercropping, adding value to sugar products, and expanding export markets.