The International Monetary Fund (IMF) concluded its 2025 Article IV Consultation Mission to Fiji in March, noting that the country’s economy continues to recover steadily after the pandemic-induced downturn. Led by Alasdair Scott, the IMF delegation met with senior government officials, private sector representatives, and civil society organisations during their visit.
The Fund estimates that real GDP growth reached approximately 3.75% in 2024, driven mainly by a strong resurgence in the tourism sector. Visitor arrivals from key markets like Australia and New Zealand returned to near pre-pandemic levels, spurring demand across hospitality, transport, and retail industries. However, the IMF warned that the pace of growth is expected to ease in 2025, moderating to around 3%. Factors contributing to this outlook include plateauing tourism activity and increased competition within the Pacific tourism market, putting downward pressure on average tourist spending.
Encouragingly, the IMF noted that Fiji’s fiscal position has improved, thanks in part to prudent management under the FY2023–24 national budget. The country’s debt-to-GDP ratio is on a downward trajectory, aided by better-than-expected revenue performance and expenditure control. However, public debt remains high, and the IMF cautioned that further consolidation is essential to rebuilding fiscal buffers.
The IMF strongly recommended the continuation of structural reforms to strengthen economic resilience. Areas identified for reform include improving access to reliable utilities, upgrading transport infrastructure, and expanding digital connectivity. The Fund also pointed to the need to address labour shortages and skills gaps, recommending policies to expand and upskill the workforce.
The mission’s findings also raised concerns about Fiji’s external sector. Although the current account deficit has narrowed, it is projected to remain around 7% of GDP. With financial inflows projected to stay below pre-COVID levels, the IMF warned that foreign exchange reserves could come under pressure over the medium term.
The Fund concluded by acknowledging the government’s efforts to stabilise the economy and encouraged sustained engagement in reforms to secure long-term growth and financial stability. The final report is expected to inform Fiji’s fiscal and economic strategy for the coming year.
