Despite a marginal increase in global Foreign Direct Investment inflows in 2023, reaching an estimated $1.37 trillion, economic uncertainties and higher interest rates have impacted overall investment. The United Nations Conference on Trade & Development (UNCTAD)’s Investment Trends Monitor suggests a potential modest rise in FDI flows for 2024, with stabilised financing conditions. (The monitor provides the international community with up-to-date data and analysis on trends and emerging issues relating to FDI and the activities of multinational enterprises.)
However, persistent risks include geopolitical uncertainties, high debt levels in many countries, and concerns about global economic fragmentation. Fiji’s domestic economic landscape remains robust, buoyed by a thriving tourism sector, robust remittances, and resilient domestic demand. The Reserve Bank of Fiji’s December Economic Review notes these factors counteracted challenges such as slower economic growth in major trading partners, elevated price pressures, and softer performance in primary and natural resource sectors.
This analysis was provided by Kamal Chetty, Chief Executive Officer, Investment Fiji, writing on the Investment Fiji website.
Indicators for investment activity in Fiji exhibit a gradual recovery. Commercial banks’ new lending for investment purposes saw a 29.6 per cent annual increase by November, driven by higher lending in private individuals, building and construction, and real estate sectors. The value of work put in place also rose by 7.8 per cent in the third quarter. Leading indicators for construction activity, like building permits issued, improved by 17.1 per cent cumulatively to the third quarter. Fiji’s economic resilience and positive investment indicators signal a promising outlook for 2024, though global risks remain a crucial factor in shaping the investment landscape.
