Fiji’s economic growth is expected to slow slightly over the next two years, according to the Asian Development Bank’s (ADB) Economic Forecasts for Asia and the Pacific: July 2026, with the country projected to expand by 2.6% in 2026 and 2.5% in 2027.
The latest forecast places Fiji below the Pacific regional average, which is expected to grow by 3.3% in 2026 and 3.2% in 2027.
Among Pacific economies, Palau is forecast to record the strongest growth in 2026 at 5.8%, followed by Vanuatu (4.7%) and Papua New Guinea (3.6%). Fiji’s projected growth is broadly in line with Nauru, Niue and Tuvalu, while remaining ahead of several smaller island economies.
On inflation, the ADB has revised Fiji’s 2026 inflation forecast upward to 3.6%, citing external price pressures, along with higher kava and transport prices.
However, the Bank has maintained its 2027 inflation forecast at 1.9%, noting that higher baseline global oil prices have already been factored into the outlook.
The report says governments across the Pacific have continued to use subsidies and temporary tax relief measures to help shield households from rising living costs.
ADB warned that the main risks to the Pacific inflation outlook remain volatile international commodity prices, particularly fuel, and potential global supply chain disruptions linked to the conflict in the Middle East.
While inflation forecasts have been revised higher for several Pacific economies, including the Marshall Islands, the Federated States of Micronesia, Palau and Tuvalu, Fiji’s increase reflects mainly imported inflation and domestic cost pressures rather than a broad deterioration in economic conditions.
