Fiji is projected to see substantial economic growth as the country continues to recover from the COVID-19 pandemic, particularly with the resurgence of the tourism sector and related industries in the coming years. According to the National Development Plan for 2025-2029 and Vision 2050, which was unveiled recently in Suva, the growth rate is forecasted at 2.8 percent in 2024 and 3 percent in both 2025 and 2026.
However, the report also highlighted that there are increasing downside risks associated with a fragile global economy, fluctuating global commodity prices, rising operational costs, and the emigration of skilled workers within the country. Labour market conditions are described as tight, with growing demand for employment driven by economic activity and an upsurge in worker migration.
The outlook for inflation and foreign reserves is expected to remain stable in the short to medium term, although there are significant risks to the external balance. Throughout the duration of the plan, there will be a concerted effort to fortify macroeconomic stability, reduce the trade deficit in the balance of payments, maintain price stability through careful monetary and fiscal policy, and enhance the fiscal situation through a strategic approach to expenditure that aligns with revenue and debt management.
The National Development Plan emphasizes that monetary policy will target the maintenance of low and stable inflation alongside adequate foreign reserves.
In addition, the focus on sovereignty will aim to protect Fiji’s territorial integrity, promote the nation as a regional hub, and ensure responsible engagement in bilateral, regional, and multilateral cooperation to boost trade and investment.
Furthermore, the plan outlines enhancements to the sugar industry, which will involve implementing cogeneration projects, developing cane varieties that are resilient to climate change, fostering research and development, attracting youth to sugar farming, improving quality standards to meet international criteria, promoting intercropping, advancing into higher value products, and expanding export markets.