Fiji’s economy is now expected to grow by 3.2 percent in 2025, marginally lower than the 3.4 percent forecast earlier, the Reserve Bank of Fiji’s Macroeconomic Committee has announced.
The RBF said this is due to the ongoing trade wars, geopolitical tensions, the downward revisions to Fiji’s trading partners’ growth outlook, and the varying speeds at which some Central Banks have reacted.
“Domestically, data for the first five months have been generally positive except for visitor arrivals,” said RBF.
“The Committee’s earlier assessment was that visitor arrivals would further rise by 4.0 percent in 2025 following record arrivals in 2024.”
“However, based on the recent trend and industry feedback, visitor arrivals are now forecast to be flat in 2025.”
“On the upside, Government expenditure has boosted demand, and expectations are that the upcoming National Budget will remain supportive of growth.”
The RBF adds consumption remains strong while accommodative monetary policy is supportive of investment activity.”
“Partial indicators such as domestic VAT collections, wage and salary, employment, remittances and bank credit show notable growth and support the revised economic projection.”
