Remittances to Fiji have seen a remarkable increase since 2022, largely driven by a surge in overseas migration, particularly with temporary migrants taking up long-term positions or pursuing studies in Australia and New Zealand. The remittance figures reflect this trend, with total private inflows rising 15.4 percent to $871 million in the year ending June 2022, boosting significantly to $1.095 billion in 2023 (an increase of 25.8 percent), and projected to reach approximately $1.23 billion in 2024 (up 12.3 percent).
Economists from ANZ Group, Dr. Kishti Sen and Tom Kenny, attribute much of this remittance growth to the expanding Pacific Australia Labour Mobility (PALM) scheme. They anticipate that while remittances may continue to increase through 2024-2025, a stabilization is expected in the following years as the overall flow of overseas migration appears to be cooling, particularly as the demand for additional workers in Australia and New Zealand levels off.
Notably, the number of students migrating from Fiji to Australia has seen a sharp decline in 2023-24, and new PALM arrivals have also tapered significantly. With students returning post-studies, this shift in migration patterns could lead to an increase in Fiji’s population starting in the latter part of 2025, thereby mitigating the long-term potential for further remittance growth.
In a recent economic review by the Reserve Bank of Fiji, remittances were noted to have surged by 29.8 percent in January 2025 compared to the same month in the previous year, largely facilitated by mobile money channels. This highlights not only the growing engagement of digital solutions in remittance transfers but also underscores the resilience of the Fijian economy, which continues to adapt to global labor trends.
The overall sentiment remains hopeful as remittances significantly enhance household welfare, potentially allowing for increased spending on non-food items and creating a more buoyant economic landscape. As Fijian families benefit from these financial inflows, the economic implications suggest a path towards improved living standards and community resilience.
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