Deputy Prime Minister and Minister for Finance Professor Biman Prasad announced that 49 projects, valued at $716 million, have either commenced or completed and are now trading, thanks to the facilitation of Investment Fiji.
Speaking at a Rotary Club Luncheon, Prof Prasad emphasized the Coalition Government’s commitment to creating a favorable investment environment in the country. He highlighted the significant value of various investment projects currently progressing through different stages of development.
He reported that there are 39 projects worth approximately $1.3 billion under construction, while 22 projects valued at around $1.5 billion are either in the pre-development phase or awaiting approval. Additionally, 27 projects valued at $2.3 billion are still at the conceptual stage.
According to Prof Prasad, 52 of these projects, amounting to $3.5 billion, are categorized as Foreign Direct Investment, and 85 projects worth $2.2 billion are Domestic Direct Investments.
The Ministry of Finance indicated a robust rebound in the domestic economy, which grew by 20 percent in 2022 after experiencing three consecutive years of contraction. This recovery was largely driven by strong performance in tourism and related sectors such as wholesale and retail, manufacturing, finance, and agriculture, alongside improved net tax collections throughout the year.
Prof Prasad noted that the Fijian economy has recovered significantly from the downturn caused by the pandemic in 2020 and 2021, with GDP exceeding pre-pandemic levels in 2023. He pointed out that the economic recovery is the fastest among other tourist-dependent nations, primarily fueled by a strong recovery in tourism, which saw visitor arrivals surpass expectations in 2023.
In 2023, visitor arrivals reached a record high of 929,740, a four percent increase over the previous peak of 894,389 in 2019. The economy showed a growth rate of 7.5 percent for the year.
Looking ahead, the Government remains committed to restoring fiscal sustainability by reducing debt, enhancing fiscal transparency and accountability, and ensuring quality and targeted expenditures. Prof Prasad mentioned a reduction in the budget deficit from seven percent of GDP in 2022-2023 to approximately four percent in the most recent budget, with a projection of 4.5 percent for the 2024-2025 budget. He also stated that the debt-to-GDP ratio is anticipated to reach 77.8 percent by July 2025.