Fiji’s remittances are expected to reach approximately $1.34 billion by the end of this year if the current growth trend persists. Remittances have become the country’s second-largest source of foreign exchange after tourism, experiencing significant growth during and after the COVID-19 pandemic, with 2023 figures reaching $1.25 billion.
Westpac Fiji’s senior economist, Shamal Chand, highlighted that personal remittances rose by 5.0 percent to $622.2 million in the first half of this year. He noted that a substantial portion of these funds was sent through mobile network operators (45 percent), money transfer operators (36.7 percent), and commercial banks (17.8 percent).
Chand indicated that if these trends persist, remittances could reach around $1.34 billion by the end of 2024, representing a more modest growth rate of 6.9 percent compared to the average growth rate of 20 percent seen from 2020 to 2023, as migration trends are anticipated to slow down.
He referenced the 2019-20 Household Income and Expenditure Survey, which found that the average household received $1,651.29 in remittances and gifts. Urban households received an average of $1,866.10, while rural households received $1,372.80 annually.
Chand noted 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 10 percent income group, suggesting that wealthier families are more likely to have relatives abroad capable of sending money home.
In contrast, he observed that the distribution of pensions and social benefits is more equitable across all income levels.
Chand also mentioned that while the impact of remittances on household income and spending behaviors has not been extensively studied, the latest HIES report indicated that overall consumption patterns leaned more towards non-food categories rather than food items. He concluded that as household welfare improves, the share of food expenditure typically decreases, reinforcing the notion that higher-income groups receive more remittances and tend to spend a greater portion on non-food items.