Fiji’s remittances are expected to reach approximately $1.34 billion by the end of this year if the current growth trend persists. This financial inflow has become the nation’s second-largest source of foreign exchange, following tourism, and has experienced significant growth during and after the COVID-19 pandemic, with remittances totaling $1.25 billion in 2023.
Westpac Fiji’s senior economist, Shamal Chand, noted that personal remittances rose by 5.0 percent to $622.2 million in the first half of this year. He explained that the majority of these funds were sent through mobile network operators (45 percent), money transfer operators (36.7 percent), and commercial banks (17.8 percent).
Chand indicated that if current trends persist, remittances are projected to reach around $1.34 billion by the end of 2024. This forecast reflects a more modest growth rate of 6.9 percent compared to the average growth of 20 percent observed between 2020 and 2023, as trends in migration are anticipated to slow down.
He referenced the latest 2019-20 Household Income and Expenditure Survey (HIES), revealing that the average household received remittances and gifts amounting to $1,651.29, with urban households averaging $1,866.10 and rural households receiving about $1,372.80 annually. Chand pointed out that one-fifth of remittances were directed to households in the top 10 percent income bracket, while only 4.3 percent went to the lowest income group, indicating that wealthier families are more likely to have relatives abroad who can send money home.
In contrast, the distribution of pensions and social benefits appeared to be more evenly allocated across different income groups. He remarked that the effects of remittances on household income and spending patterns have not been extensively studied, but the recent HIES report suggested a tendency for overall consumption to lean more towards non-food items rather than food, as household welfare improves. This observation reinforces the notion that higher-income families receive larger remittances and allocate a greater share of their spending to non-food categories.