THERE is an untapped potential in Fiji’s rural economy, and it plays a critical role in developing a resilient and diversified Fijian economic growth.
ANZ’s International Economist for the Pacific Dr Kishti Sen emphasised on this during a media briefing in Suva yesterday.
Dr Sen highlighted that while Fiji’s economy is viewed through the lens of formal sector activity, the real driver of consumer demand lies in the rural economy.
“We estimate that 53 per cent of Fiji’s consumer demand comes from farming households, supported by remittances and farm exports.
“Contrary to popular belief, it is not salaried household driving final expenditure figures.
“This is where the potential for a stronger, more inclusive economy lies,” Dr Sen said.
He noted that Fiji’s rural economy has yet to take off due to limited investment in high-value commodities and infrastructure challenges, stressing that Fiji has put nearly all its eggs in the sugar basket which is now declining.
“Diversifying into niche products like ginger, turmeric, and kava could lift economic growth into 5-6 per cent and help build a resilient middle class,” Dr Sen said.
Dr Sen further pointed out the agriculture’s indirect contribution to GDP, that it far exceeded its direct contribution due to spillover benefits to sectors like manufacturing, telecommunications and retail.
“Realising agriculture’s full potential requires investment in infrastructure — roads, ports, refrigeration, water, electricity, and long-term land leases — as well as access to high-yield seedlings, training, and transport subsidies,” he said.
In his latest forecast on Fiji, Dr Sen noted that while private and public investment remain strong — with the investment pipeline ticking over to $600 million — overall demand is slowing due to stabilising remittances and slower rural export growth.
“We’re forecasting GDP growth of 2.8 per cent in 2025, moderating to 2.6 per cent in 2026 but stronger growth is expected from 2027 as more projects enter the investment pipeline and rural incomes begin to rise,” he said.
Note: This article was first published on the print version of the Fiji Times dated August 13, 2025