The total two-way trade between Fiji and New Zealand has officially surpassed the $2billion mark, forcing a reassessment of how balanced the economic relationship truly is between the two Pacific neighbours.
Reserve Bank of Fiji governor Ariff Ali said out of Fiji’s $3.5 billion in total foreign reserves, $700 million was currently invested directly in New Zealand government securities and highly rated corporate entities.
“Most people do not know, but we actually invest or lend to New Zealand companies totalling $F700m,” Mr Ali said in his address at the Fiji New Zealand Business Council (FNZBC)-New Zealand Fiji Business Council (NZFBC) 2026 joint conference at the Sofitel Fiji Resort and Spa in Nadi yesterday.
While merchandise trade heavily favours New Zealand, creating a merchandise trade deficit of close to $900m for Fiji, Mr Ali said the overall economic ledger remained balanced when accounting for invisibles.
Fiji imports just over $1b worth of goods from New Zealand while exporting under $200m.
“The trade deficit is financed by tourism, remittances, and foreign direct investment that flows in.
“When you look at the overall two-way trade between Fiji and New Zealand, it’s balanced.”
Mr Ali said New Zealand remained a vital pillar for Fiji’s tourism sector, accounting for 22 per cent of all visitor arrivals last year compared to 18 per cent a decade ago. While the relationship is also heavily defined by human capital, Mr Ali said that continued to present structural challenges for local industries.
He said Fiji had lost approximately 20,000 highly skilled workers to New Zealand over the last three years alone
“Fiji’s labour force is highly marketable, we lose a lot of skilled people, so we complain about them, but on the other hand, a lot of them send remittances back to Fiji.”
Mr Ali said personal remittances had grown by almost 25 per cent so far this year, providing critical support for domestic consumption and broader economic growth.
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