Consumer spending continues to drive robust economic activity in Fiji, according to the latest economic review from the Reserve Bank of Fiji (RBF). The report highlights significant growth in consumption-related loans, which surged by an impressive $835 million year-on-year as of April 2025, indicating a substantial 65.3% increase over the previous year. This growth is predominantly supported by the wholesale, retail, hotel, and restaurant sectors.
Additional indicators of economic strength include an increase in net Value Added Tax (VAT) collections, which rose by 10% from January to April 2025, largely due to higher domestic collections, up by 14.4%, and customs collections, which increased by 12%. The uptick in domestic collections can be partly attributed to rising wages, with preliminary data from the Fiji National Provident Fund (FNPF) indicating a nearly 3% increase in registered employees and a notable 10% rise in average wages.
Inward remittances also contributed positively to household spending, totaling $448.5 million in the first four months of 2025, marking a 10.4% rise compared to the same period last year, with mobile money channels being a primary mode of transfer. Vehicle registrations experienced healthy growth as well, showing a 28.1% annual rise into April, fueled by strong demand for both new and used vehicles.
Electricity consumption rose modestly by 1.9%, reflecting increased demand from both residential and industrial users. This variety of strong indicators suggests that Fiji’s economic landscape remains resilient, with consumer spending being a key factor supporting growth.
The RBF’s forecasts, combined with similar observations from prior assessments, paint an optimistic picture for Fiji’s economy moving forward. Challenges such as investment growth discrepancies and the need to address construction costs and regulatory hurdles were noted, but the overall sentiment remains positive. The transition towards a more balanced approach between consumption and investment is anticipated to pave the way for sustainable economic development.
As Fiji navigates these complexities, continued recovery and growth appear achievable, buoyed by strong consumption trends and rising incomes, setting a hopeful tone for its economic future.
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