FIJI has the potential to achieve sustained economic growth greater than 6 percent over the long term, according to ANZ senior Pacific economist Kishti Sen. Sen emphasizes that international trade in goods, particularly in agriculture, could be pivotal for unlocking the country’s economic potential.
He advocates for a robust focus on agricultural development, stating, “Go big on agriculture.” By tapping into the true potential of the rural economy, Fiji could ensure that economic growth is more evenly distributed among its population. Sen points out that higher farm incomes extend benefits beyond agriculture, positively impacting household service sectors such as retail, telecommunications, construction, recreation, accommodation, food services, and transport.
“The rural economy significantly contributes to private consumption expenditure,” Sen explains, highlighting that much of the population resides in rural areas that have yet to fully develop. He notes that Fiji has primarily relied on the sugar industry and has not invested sufficiently in commodities that command higher prices in global markets.
To foster economic growth, he advises diversifying into commodities with strong global demand and enhancing the support infrastructure needed for large-scale agricultural production. This includes improvements in refrigeration facilities, reliable water and electricity supply, as well as better transport networks. Sen also calls for the provision of high-yield, disease-resistant planting materials, necessary training, and subsidies for transport.
He asserts that relying solely on traditional monetary policies will not suffice to stimulate household spending power in Fiji. Instead, increasing agricultural export volumes and securing better prices could lead to enhanced income and spending capacity, thereby bolstering local businesses and job creation. This shift could help reduce Fiji’s dependence on tourism and remittances, nurturing a more resilient and diversified economy.
Looking ahead, Sen projects a baseline GDP growth of 3 percent for 2026, with potential upside risks, particularly if larger residential, commercial, and industrial projects begin early in the year. By embracing these opportunities, Fiji could embark on a path to shared prosperity and economic resilience.
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