The ANZ Bank is predicting Fiji’s economy to expand by 3.4 percent this year, surpassing the Reserve Bank of Fiji’s official estimate of 2.8 percent. In its latest Pacific Insight report titled “Fiji’s ‘safe’ mid-term budget won’t upset the apple cart,” ANZ economists Tom Kenny and Dr. Kishti Sen stated that while the government anticipates economic growth of 2.8 percent in 2024 and 3 percent in 2025 and 2026, they are more optimistic. They attribute their bullish stance to stable underlying drivers such as visitor arrivals, remittances, and agricultural output.
Co-author Dr. Kishti Sen explained that there is potential for further growth from tourism despite challenges such as room shortages in Fiji and tighter financial conditions in source markets. He emphasized that there are other growth areas in the economy, including wholesale and retail, construction, agriculture, and mining.
Dr. Sen believes that achieving a GDP growth of 3.4 percent this year is realistic, although he cautioned against overly high expectations. He noted that last year they had advised Fiji to prepare for moderate growth in the coming decade but expects stronger growth driven by a reinforced tourism sector later in the decade.