Fiji’s economy exhibited favourable growth in 2024, underpinned by robust financial indicators and sectoral performances. The Reserve Bank of Fiji (RBF) reported an 8.4 per cent expansion in broad money, reflecting increased liquidity and financial activity within the economy. Private sector credit also saw a significant rise of 11.4 per cent, indicating heightened borrowing and investment by businesses and consumers.
Lending to businesses and households grew by 10.9 per cent and 13.3 per cent, respectively, signalling strong private sector confidence and a willingness to invest in economic activities. This credit expansion has been instrumental in driving consumption and investment, contributing to overall economic growth.
The tourism sector, a cornerstone of Fiji’s economy, experienced a notable rebound. Visitor arrivals increased by 6.3 per cent up to September 2024, surpassing earlier projections and providing a substantial boost to related industries such as hospitality, transportation, and retail.
In light of these positive developments, the Macroeconomic Committee revised Fiji’s GDP growth forecast for 2024 upwards to 3.8 per cent, from the 2.8 per cent projected in June. This adjustment reflects the stronger-than-expected performance in key sectors and improved economic indicators observed in the latter half of the year.
The RBF maintained an accommodative monetary policy stance throughout 2024, supporting economic recovery by keeping interest rates low to encourage borrowing and investment. This policy environment, coupled with increased government spending, has been pivotal in sustaining economic momentum.
However, challenges remain. The World Bank noted a slowdown in growth across the Pacific, including Fiji, due to factors such as reduced investment and increasing climate risks. Fiji’s public debt stood at 79 per cent of GDP in 2024, among the highest in the region, necessitating prudent fiscal management to ensure sustainable economic progress.
Looking ahead, the RBF projects continued economic growth, with GDP expected to expand by 3.4 per cent in 2025. This outlook is supported by anticipated sustained performance in key sectors, ongoing government initiatives to stimulate the economy, and a stable financial environment conducive to investment and development.
