The growth projection for Fiji’s economy this year is revised upward to 8.0 per cent from the 6.0 per cent envisaged in November 2022.
Reserve Bank of Fiji governor and Macroeconomic Committee chairperson Ariff Ali said the key sectors contributing to the upward growth projection were the accommodation and food services, transport and storage, agriculture, manufacturing, wholesale and retail sales, finance and insurance, administrative services, and construction and net indirect taxes.
For 2022, he said given the better-than-expected rebound in tourism and related sectors, the domestic economy was estimated to have grown by 18.6 per cent, higher than the 15.6 per cent previously projected.
The service sector and net indirect taxes contributed the most to the revised growth estimate, he said.
“In 2024 and 2025, Fiji’s economy is forecast to return to the pre-pandemic trend and grow by 3.8 per cent and 3.0 per cent, respectively,” Mr Ali said.
“Despite the upward revision to the growth projection for this year, risks to the outlook are tilted to the downside.
“The global headwinds are from the continued geopolitical tensions, rapid interest rate hikes in advanced economies and the possibility of global recession.
“Domestic headwinds include uncertainty surrounding tax policies and the extent of fiscal consolidation in the upcoming national budget, high emigration, climate change, and natural disasters.”
The next review of macroeconomic projections is scheduled for the last quarter of 2023.
