Fiji is on track to grow 3.4% in 2025, marking a fourth straight year of expansion, according to a statement from the Reserve Bank of Fiji (RBF).
This is slightly up from the 3.2 % forecast in June
What’s driving the growth
The growth comes on the back of various factors, including:
- A softer-than‑expected US tariff has eased pressure on Fiji’s exporters — exporters were bracing for 32% but ended up facing about 15%.
- The global economy is performing a bit better: the International Monetary Fund has raised its forecast for world growth in 2025 from 3.0% to 3.2%.
- Locally, consumer spending is strong thanks to higher incomes, remittances and government spending. Lower value‑added tax (VAT) has also helped ease costs for households.
- The economy has been rebased using new data (2019 instead of 2014), which gives a clearer picture of current economic activity.
- Increased construction, more building permits, and stronger lending activity — all signs of improving investment. Sectors like forestry, public administration, retail, and construction have been upgraded for growth.
- Tourism is bouncing back, and Fiji is expected to record another strong year for visitors in 2025.
However, some sectors are under pressure:
- The sugar and cane industry is expected to produce less in the 2025 crushing season.
- Fishing is forecast to decline due to changing weather patterns and falling fish stocks.
While growth is projected to be around 3.0% a year for 2026‑28, the RBF points out that major risks remain, including global uncertainty, weaker tourism, structural industry problems, and the threat of severe weather/cyclones.
Why this matters
The state of the economy directly affects everyday life in Fiji.
If the economy grows steadily, jobs are more secure, incomes are likely to rise, and families have more money to spend on essentials. Government services, like healthcare, education, and infrastructure, can be better funded, benefiting everyone.
On the other hand, sectors facing challenges — like sugar, fishing, or rural communities — may see fewer opportunities and need extra support.
For more details, you can read the full statement from the Reserve Bank of Fiji here: Press Release No 24 – Revisions to the Macroeconomic Projections for the Fijian Economy (2025‑2028)
