Fiji’s economic growth is projected to be 3.2 percent in 2025, down slightly from the previous forecast of 3.4 percent, as disclosed by the Reserve Bank of Fiji’s (RBF) Governor Ariff Ali, who chairs the Macroeconomic Committee. This revised forecast stems from a thorough evaluation of several key factors influencing the economy.
The committee noted a global economic slowdown as a significant challenge, while domestic government expenditure has been instrumental in increasing demand. There are expectations that the upcoming National Budget will continue to be conducive to growth. Strong consumer spending, facilitated by an accommodative monetary policy, alongside growth in domestic Value Added Tax collections and significant improvements in employment and remittances, are cited as positive signs for the economy.
The 2026 and 2027 forecasts indicate a recovery to a long-term growth trend of approximately 3.0 percent, with the services sector continuing to be the primary engine for economic expansion. The revised assessment for 2024 shows a more robust growth rate of 4.0 percent, driven largely by sectors such as public administration, transport, accommodation, information and communication technology (ICT), wholesale and retail, financial services, manufacturing, and agriculture.
However, feedback from the tourism industry has painted a less optimistic picture, with visitor arrivals now anticipated to remain flat in 2025, contrary to earlier projections of a four percent increase. This downturn follows a record rise in visitor arrivals in 2024.
On a positive note, the resilience of Fiji’s economy is highlighted by strong consumer confidence and ongoing governmental initiatives to stimulate growth, even amidst challenges, particularly in the tourism sector. The continuous evaluations and adjustments of forecasts underscore the commitment to adaptability in facing evolving economic conditions.
Overall, while the adjustments indicate a cautious approach regarding growth expectations, there remains hope that Fiji’s economy can sustain its momentum through strategic planning and investment in key sectors, paving the way for a resilient future.
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