ANZ Pacific states Fiji’s 2025-2026 budget is a pro-growth plan.
Their assessment states Fiji is transitioning from a tourism-led economy to a more balanced economy.
ANZ Bank adds Government stimulus is needed to sustain demand and support the transition to broad based growth.
“Successive large deficit budgets will push public sector debt to an all-time high of FJD11.7bn by the end of July 2026 (79.8% of GDP),” states ANZ.
“There will be a time in the future to think about returning the fiscal position to a more sustainable footing.”
“That can happen once the private sector-led new sources of growth come through and become the main drivers of growth.”
ANZ adds this is likely to happen from 2027 when emerging industries such as business process outsourcing, data processing and warehousing mature.
Hence, towards the end of the decade may be a good time to start handing down smaller deficit budgets with an aim of delivering surplus budgets within 10 years so that the debt reduction plan can commence.
For the here and now, the overriding need is to continue to ensure the economic health of Fiji.”
If impeded, the economy could languish but if facilitated it increases the speed with which Fiji gets to the other side.”
“Fiji’s 2025-26 Budget facilitates growth and, without strong public demand, the slowdown in economic activity might have been more severe.”
