Fiji’s economy has rebounded sharply with back-to-back years of strong growth, reduced public debt, and improved investor confidence, Finance Minister Professor Biman Prasad said in Parliament today.
Announcing the 2025–2026 National Budget, Prof Prasad said GDP growth hit 7.5 per cent in 2023 and 4.0 per cent in 2024, driven by booming tourism, increased household consumption, and a surge in business activity.
“Our economy recovered much faster than projected since 2022,” he said. “Foreign reserves now stand at $3.7 billion, and liquidity in the banking system is high at $2.1 billion.”
Inflation has also plummeted, falling from 5.1 per cent in 2023 to just 0.1 per cent in May 2025.
“These reflect a resilient financial position which is supporting a low-interest rate environment conducive for private sector investment and household spending,” Prof Prasad said.
The minister credited decisive fiscal reforms such as wage hikes, tax adjustments, and student debt cancellation, for helping rebuild trust in public institutions and stimulating growth.
The public debt-to-GDP ratio now sits below 80 per cent, down from over 90 per cent when the Coalition Government took office in 2022.
However, Prof Prasad also issued a warning. Global risks, particularly escalating tensions in the Middle East and trade uncertainty involving the US, were clouding the outlook.
“The Macroeconomic Committee earlier this month revised the 2025 growth forecast slightly downward to 3.2 per cent,” he said.
Despite this, he remained optimistic: “The good news is that our economic foundations remain strong.”
