Westpac Fiji has adjusted its growth forecast for the country’s economy, increasing it from 2.5 percent to 3.0 percent for the current financial year. This update was announced by senior economist Shamal Chand in their latest quarterly economic report, which was released yesterday. Chand expressed optimism for another year of strong growth in Fiji.
He noted that early indicators point to a significant surge in tourism activity, alongside solid performances in the construction sector, investment, and private sector credit. The revision is attributed to various positive factors including heightened tourism activity, promising investment and construction opportunities, a resurgence in manufacturing, favorable wholesale and retail sales, and the fiscal stimulus introduced in the 2024-2025 National Budget.
Chand explained that the initially lower provisional growth figures for 2023 necessitated this upward adjustment for the ongoing year. He anticipates that economic growth will stabilize at 3.4 percent from 2025 onwards, which is consistent with historical averages.
Key partial indicators provided by the Reserve Bank of Fiji (RBF) show significant growth up to August this year, including an 11.0 percent increase in electricity production, a 10.1 percent rise in consumption, a 30.3 percent surge in gold production, an 18.3 percent increase in cane production during harvest season, and gains of 6.6 percent in cement production and 7.6 percent in sales. Domestic credit has grown by 6.8 percent, with private sector credit up by 11.6 percent, indicating a strong appetite for borrowing and investment.
Chand expressed confidence in the revised economic outlook, pointing to the progress made in the remaining quarter of the year and how it sets a positive tone for 2025. He highlighted the importance of major investment projects and tourism sector expansion in achieving a growth rate exceeding 3 percent in the medium term.