Fiji’s economy is not growing fast enough to achieve its long-term development ambitions, while businesses continue to face rising costs, severe skills shortages and increasing vulnerability to external shocks, the Fiji Commerce and Employers Federation says.
In its Private Sector White Paper, FCEF said economic growth had been revised down to 1.5 per cent for 2026, before increasing to a projected 2.5 per cent in 2027 and 3 per cent in 2028.
The Federation said these rates remained significantly below the estimated 5 per cent annual growth required for Fiji to transition to a higher-income economy by 2050.
FCEF identified inflation, the widening trade deficit, slow economic diversification and legislation that it says impedes business sustainability, innovation and modernisation among major challenges confronting the private sector.
It said Fiji also remained vulnerable to geopolitical conflicts, fuel price volatility and climate-related events, while delays in transitioning to renewable energy continued to leave the economy dependent on imported fuel.
The White Paper also highlighted what FCEF described as a labour and skills crisis, noting more than 114,000 Fijians migrated overseas between 2018 and 2025, including a significant number of skilled workers.
Employers, it said, continued to report critical skills shortages across several sectors, while foreign worker recruitment had increased by 79 per cent over the past three years.
Youth unemployment was estimated at about 18 per cent, while approximately 26 per cent of young people were not engaged in education, employment or training.
FCEF said addressing these challenges would require coordinated reforms across education, training, labour market policy, healthcare and economic development.
The Federation said its White Paper was intended to help shape the manifestos of political parties contesting the 2027 General Election and was not aligned with any particular party.
“Investor confidence and economic prosperity are heavily reliant on political will,” the White Paper stated.
It said political parties needed to recognise that election promises ultimately depended on the country’s ability to generate sustainable economic growth.
“While political parties need to respond to the needs and aspirations of their potential voters, it is important to understand that those campaign promises can only be funded if there are economic growth and stability,” FCEF said.
“Economic growth is only realised if the right business policies are adopted and implemented when in Government.”
