Business confidence in Fiji has declined sharply, with the latest Reserve Bank of Fiji survey showing weakening expectations for economic activity and employment despite improving investment intentions.
According to the Reserve Bank of Fiji’s The Fijian Economy – September 2026 Chart Pack, overall business confidence for the next six months fell to approximately 15 per cent in February 2026, compared with around 28 per cent in August 2025.
Confidence in the 12-month economic outlook also declined significantly, dropping from approximately 42 per cent in August 2025 to 21 per cent in February 2026.
The figures represent net survey responses, reflecting the balance between businesses expecting improvements and those anticipating deterioration.
The decline marks a significant shift from the stronger confidence levels recorded in previous years.
In December 2021, business confidence for the next 12 months stood at approximately 70 per cent, while the six-month outlook was around 57 per cent.
However, despite weakening overall confidence, businesses indicated stronger intentions to invest in buildings, plant and machinery.
The survey showed that the net investment outlook for buildings increased sharply to approximately 51 per cent in February 2026, compared with around 21 per cent in August 2025.
Investment intentions for plant and machinery also rose from approximately 35 per cent to 49 per cent over the same period.
This suggests that while businesses have become more cautious about the broader economic outlook, some are still planning capital investments over the next 12 months.
Employment expectations, however, paint a more concerning picture.
The net outlook for full-time employment declined to approximately 10 per cent in February 2026, compared with around 34 per cent in August 2025.
Part-time employment expectations also fell sharply, from approximately 32 per cent to 10 per cent.
These are among the weakest employment outlook readings shown in the survey since December 2020.
The Reserve Bank’s survey also highlighted changing inflation expectations among businesses.
Approximately 44 per cent of respondents expected inflation to range between four and six per cent over the next 12 months, while around 40 per cent anticipated inflation of between one and three per cent.
Another 16 per cent expected inflation to exceed seven per cent.
The findings indicate a mixed business environment, with improving investment intentions contrasting with weaker confidence and reduced expectations for employment growth.
While the investment outlook suggests continued interest in business expansion, the sharp decline in hiring expectations raises questions about how quickly planned investments may translate into additional employment opportunities.
The survey figures are based on February 2026 responses presented in the RBF’s September 2026 Chart Pack and reflect business expectations rather than actual investment or employment outcomes.
