Fiji’s economy is set to see an influx of $600 million in private investment next year, which is expected to significantly contribute to local economic growth through 2026.
Dr. Kishti Sen, senior economist for the Pacific region at ANZ, noted that private investment, primarily in residential and non-dwelling buildings, has been stagnant but is now beginning to recover. He expressed concern about the lack of construction activities in both residential and commercial sectors, stating that this has hampered private investment.
However, he highlighted that the government’s commitment to consult with the business community before implementing any new policies or legislation is likely to enhance investor confidence. Dr. Sen believes that with increased assurance from the government, investors will be more inclined to proceed with previously approved projects.
He commented, “We anticipate an additional new spend of around $600 million in the economy next year. With fresh investments, construction—which has a significant multiplier effect—will benefit various industries interconnected with the construction sector, helping sustain economic growth into next year.”
He further emphasized that with bolstered confidence, the private sector is poised to play a more prominent role in stimulating economic activity, especially in the latter half of this year. Dr. Sen also indicated that private investments could ramp up by 2025, potentially leading to job creation and increased spending power for households.
In addition to private investments, he mentioned that public infrastructure projects including roads, ports, and jetties are also crucial. Overall, he anticipates that the construction sector will have a prosperous year ahead, primarily driven by private investment.
Dr. Sen concluded by stating that the domestic economy remains resilient and that private investment will be a key factor in driving economic performance into 2025 and 2026.