Fiji’s economy is set to experience an influx of $600 million in private investment next year, which is expected to significantly influence local economic growth through 2026. Dr. Kishti Sen, ANZ’s senior economist for the Pacific region, noted that private investments, particularly in residential and non-dwelling buildings, have been low but are now beginning to show signs of recovery.
Dr. Sen pointed out the lack of substantial construction activity, including residential, office, and retail developments, which has led to weak private investment levels. However, he expressed optimism that the government’s commitment to engage with the business sector prior to any policy or legislative changes will enhance investor confidence.
He explained that with increased assurance, investors are likely to pursue projects that are already approved and ready to proceed. “We anticipate an additional new spend of about $600 million into the economy next year,” said Dr. Sen, highlighting the positive ripple effects of construction on various other industries.
He emphasized that construction serves as a major economic multiplier, benefiting numerous sectors connected to it, suggesting that economic growth will remain robust into the coming year. He also noted that with a boost in confidence, the private sector is poised to take a more leading role in economic activity starting from the latter half of this year.
Looking ahead to 2025, Dr. Sen expects private investment to generate new job opportunities and enhance household spending. Alongside government-funded infrastructure initiatives, such as the development of roads, ports, and jetties, he believes the construction sector will thrive, primarily driven by private investment.
Overall, he is confident that the domestic economy is performing well, with private investment anticipated to be a key driver of growth into 2026.