Both economic growth and challenges are expected to grow in Fiji by 2.8 per cent in 2024, according to the National Development Plan (NDP).
The plan also points to a growth rate of 3 per cent in both 2025 and 2026.
It says the anticipated growth is attributed to increasing economic activity as the tourism sector, a vital part of Fiji’s economy, continues to recover.
However, this optimistic outlook comes with significant challenges.
“Labour market conditions remain tight as demand for labour continues to rise, reflecting growth in economic activity coupled with increased worker emigration,” the NDP states.
“Outlook for inflation and foreign reserves is expected to be within the comfortable range over the short- to medium-term, however, with considerable downside risks to external balance.”
The NDP states that during the plan period, the focus will be to strengthen macroeconomic stability by narrowing the trade deficit in the balance of payments, achieve price stability through a prudent monetary and fiscal policy, and improve the fiscal position through a more judicious expenditure strategy consistent with revenue and debt strategy.
The plan states the Government aims to strengthen macroeconomic stability by addressing these concerns through various strategies.
It adds that during the NDP period, the Government plans to narrow the trade deficit in the balance of payments, achieve price stability via prudent monetary and fiscal policies, and improve the fiscal position through careful expenditure strategies aligned with revenue and debt management.
“In many cases, private sector participation has been constrained by heavy regulatory and bureaucratic burden, and high cost of doing business.
“Further, the Government is involved in several economic sectors through State-owned entities, which at times crowd out private investment.
“Promoting and facilitating private sector investment across all sectors of the economy and rationalising the role of the Government in economic activities has the potential to open new space for private investment, increase efficiency and productivity and unleash Fiji’s economic growth and elevate it to a higher growth trajectory.”
