Fiji’s economy is demonstrating remarkable resilience and recovery, as evidenced by Finance Minister Professor Biman Prasad’s announcement of significant growth during a parliamentary session. The 2025-2026 National Budget revealed that the country’s Gross Domestic Product (GDP) climbed by 7.5% in 2023, followed by a forecasted growth of 4.0% in 2024, driven largely by a resurgence in tourism, increased household consumption, and heightened business activities.
This positive trajectory follows a tumultuous period during which the economy faced enormous challenges. Since taking office in 2022, the government has implemented decisive fiscal reforms, including wage increases and adjustments to the tax system, all aimed at revitalizing public trust and stimulating economic expansion. Notably, Fiji’s foreign reserves are currently at a robust $3.7 billion, indicating a healthy liquidity level in the banking system, reported at $2.1 billion.
Supporting this economic resurgence, inflation rates have plummeted from 5.1% in 2023 to just 0.1% in May 2025, reflecting a stable financial environment conducive to private sector investment and enhanced consumer spending. Furthermore, the public debt-to-GDP ratio has improved, now positioned below 80%, a significant decrease from over 90% at the onset of the current government.
However, while the outlook remains optimistic, Prasad emphasized caution due to potential global risks, including escalating tensions in the Middle East and ongoing trade uncertainties involving the United States. The Macroeconomic Committee has slightly revised the growth forecast for 2025 down to 3.2% to account for these global challenges.
Professor Prasad’s assessment underscores a resilient fiscal foundation, suggesting that despite some external pressures, Fiji is well-equipped to navigate potential obstacles with strength and confidence. Overall, the government’s strategic approach towards fiscal discipline and sustained investment in key sectors is paving the way for a promising and stable economic future in Fiji.
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