The Reserve Bank of Fiji (RBF) says the domestic economy remains on track to grow for the fourth consecutive year in 2025, with key sectors maintaining generally positive performances despite challenges in some industries.
According to the October 2025 Economic Review, visitor arrivals grew marginally by 0.3 percent to 735,154 in the year to September. This was driven by sustained increases from the United States (11.3%), United Kingdom (10.6%), and Pacific Island countries (5.0%), while arrivals from Australia (-0.6%), New Zealand (-2.8%), and Asian markets (-9.7%) declined.
“Tourism continues to be a key pillar of growth, with emerging markets like the US and UK showing solid recovery,” the RBF noted.
Strong performance was also recorded in the timber sector, with production of woodchips up 4.5 percent, sawn timber up 1.4 percent, and mahogany surging by 90.3 percent. Electricity generation rose 0.3 percent, reflecting higher domestic and industrial demand.
However, sugar and cane production continued to struggle, falling 5.1 and 18 percent, respectively, due to operational issues and poor cane quality.
The RBF added that mineral water and gold production both declined, with Vatukoula Gold Mines Limited reducing ore output by 25.8 percent amid its shift to concentrate exports — a drop that outweighed Tuvatu Mine’s gains.
Strong consumption fuels economic growth
The Reserve Bank of Fiji (RBF) says consumption activity remains robust, driven by higher incomes, strong remittance inflows, and increased government spending.
According to the October 2025 Economic Review, partial indicators show elevated consumer spending, with consumption-related loans up 31.5 percent, net VAT collections up 1.3 percent, and vehicle registrations rising 23.9 percent for both new and used cars up to September. Electricity consumption also grew by 1.7 percent over the same period, reflecting higher household and business demand.
“The positive momentum in consumption is consistent with upbeat retail sentiments recorded in the August Retail Sales Survey,” the RBF stated.
“Businesses reported higher turnover, particularly in motor vehicle sales, automotive fuels, hardware materials, and food and pharmaceutical products.”
The Wholesale, Retail, and Trade (WRT) Survey showed total sales and service income climbing 4.4 percent to $3.4 billion in the first half of the year.
Looking ahead, the central bank said retail sales are expected to strengthen further in late 2025 and 2026, supported by the lower VAT rate and rising disposable incomes.
“Overall, consumption activity is projected to remain strong, underpinning steady domestic growth momentum,” the RBF noted.
