Investment activity in Fiji is experiencing a positive shift as business confidence strengthens, bolstered by a more favorable investment climate, according to the Reserve Bank of Fiji’s latest Economic Review for October 2025. The report indicates an uptick in construction activities, with the total value of work put in place rising by 12 percent in the year leading up to the second quarter. This notable growth is attributed to heightened public and private sector projects, accompanied by a 3.2 percent drop in building material prices during the September quarter.
The RBF highlighted that the increase in construction and business investment intentions is a testament to growing optimism concerning Fiji’s economic outlook. Additionally, construction-related imports surged by 5.1 percent, totaling $2.9 billion up to July, reflecting a robust demand for machinery and building materials.
However, there are mixed signals in the overall investment landscape, with new investment lending dropping by 5 percent, largely due to reduced credit in the real estate and construction sectors, which saw declines of 3.7 percent and 16.8 percent, respectively. Nevertheless, financial conditions remain favorable, as evidenced by broad money expanding by 10.9 percent in September, driven by a 9.6 percent increase in private sector credit and rising foreign reserves.
The blend of positive indicators suggests that while challenges exist, the momentum generated in the construction sector and favorable financial conditions could sustain investment activity in the upcoming months. The Reserve Bank of Fiji remains cautiously optimistic, asserting that with consistent confidence growth and momentum in construction, Fiji’s investment landscape is likely to remain resilient.
Earlier economic reviews have also hinted at an optimistic trajectory for Fiji’s economy, despite some challenges such as high construction costs and regulatory delays. If these issues can be addressed effectively, Fiji may see a further strengthening of investment opportunities, paving the way for a sustainable economic future supported by the resilience and initiative within the private sector.
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