Fiji’s Economic Surge: $716 Million in New Projects Launched!

Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that 49 projects, with a total value of $716 million, have either commenced or been completed and are currently trading, thanks to the facilitation of Investment Fiji.

Speaking at a Rotary Club Luncheon, Professor Prasad emphasized the Coalition Government’s efforts to foster an investment-friendly environment in the nation. He pointed out the significant value of investment projects across various stages of development in Fiji.

According to him, there are 39 projects valued at approximately $1.3 billion that are currently under construction, while another 22 projects, estimated at around $1.5 billion, are either in the pre-development phase or awaiting approval. Additionally, 27 projects worth $2.3 billion are in the conceptual stage.

Professor Prasad also noted that 52 projects valued at $3.5 billion fall under Foreign Direct Investment, while 85 domestic projects are valued at $2.2 billion.

The Ministry of Finance reported a significant rebound in the domestic economy, which grew by 20 percent in 2022 after three consecutive years of decline. This broad-based recovery was attributed to stronger-than-expected performances in tourism and related sectors, including wholesale and retail, manufacturing, finance, and agriculture, alongside improved net tax collections throughout the year.

“The Fijian economy has rebounded robustly from the pandemic downturn experienced in 2020 and 2021, with GDP surpassing pre-pandemic levels in 2023,” Professor Prasad stated. He highlighted that the recovery is the fastest among countries heavily reliant on tourism, significantly driven by an impressive return of visitors, which are projected to exceed expectations in 2023.

In 2023, Fiji welcomed a record 929,740 visitors, surpassing the previous peak of 894,389. The economy is reported to have grown by 7.5 percent in the same year.

Looking toward the medium term, the government is dedicated to achieving fiscal sustainability by reducing debt, enhancing fiscal transparency and accountability, and ensuring effective and targeted spending. Professor Prasad noted the improvement in budget deficits, decreasing from seven percent of GDP in the 2022-2023 budget to approximately four percent, with projections for the 2024-2025 budget set at 4.5 percent. He added that the debt-to-GDP ratio is expected to reach 77.8 percent by July 2025.

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