Fiji’s economy has undergone a major transformation over the past three decades, with the services sector—particularly tourism—emerging as the country’s primary driver of growth, according to the newly released World Bank Fiji Country Economic Memorandum released last week.
The report notes that the structure of Fiji’s economy has shifted dramatically since the 1980s and 1990s, when agriculture and manufacturing were the main contributors to GDP. Between 1990 and 2022, real value added in services grew by 2.4 percent per year, compared to 2 percent in manufacturing and just 0.9 percent in agriculture.
“Over the last 30 years, roughly 80 percent of total output growth has come from services,” the report states, highlighting the sector’s growing importance.
The World Bank attributes this shift to the decline of the sugar and garment industries following the loss of preferential trade agreements with the European Union, Australia, New Zealand, and the United States.
“Fiji has become the leading tourism destination in the Pacific, attracting more than 40 percent of all international arrivals to the region,” the report said. “It is now among the 20 most tourism-dependent countries in the world.”
Tourism-related industries have recorded the fastest growth rates, with restaurants and accommodation expanding by 4 percent per year, transport and communications by 3.6 percent, and construction by 4.4 percent.
The report also notes Fiji’s growing role as a regional maritime and trade hub, serving countries such as Tuvalu, Samoa, and Tonga. Re-exports from Fiji increased seven-fold between 2000 and 2012 before stabilising in recent years.
The World Bank said these trends underscore the importance of diversifying within the services sector and enhancing resilience to external shocks to sustain long-term economic growth.
