Fiji’s Government debt is projected to climb to $11.37 billion by the end of July 2026, according to the Pre-Election Economic and Fiscal Update released by the Ministry of Finance on June 7.
The report estimates total debt will reach 80.9 per cent of GDP, comprising $7.53 billion in domestic debt and $3.84 billion in external debt.
The update shows government debt has risen steadily over the past five years, increasing from $9.13 billion in July 2022 to the projected $11.37 billion in July 2026.
According to the Ministry of Finance, the increase reflects the economic challenges Fiji has faced in recent years, including infrastructure development needs and recovery measures implemented following the COVID-19 pandemic.
“Government debt has increased significantly over recent years due to economic challenges, infrastructure development and recovery measures following the COVID-19 pandemic,” the report states.
However, the ministry noted that the debt-to-GDP ratio has gradually improved since 2022 due to stronger economic growth.
The debt-to-GDP ratio stood at 91.8 per cent in July 2022, before declining to 83.1 per cent in 2023, 79.1 per cent in 2024, 79.0 per cent in 2025, and is projected at 80.9 per cent in 2026.
The report acknowledged concerns raised by the International Monetary Fund in its recent Article IV consultation, which found that Fiji’s debt levels remain elevated despite being assessed as sustainable.
“While Fiji’s debt position remains sustainable, the latest IMF Article IV report highlighted that Government debt is elevated and remains far above pre-pandemic levels but manageable if economic growth continues and the Government maintains tighter discipline,” the report said.
The Ministry said Fiji’s debt structure has also shifted closer to its target benchmark through increased access to concessional external financing.
Domestic debt is projected to account for 66.2 per cent of total debt by July 2026, while external debt is expected to represent 33.8 per cent.
The Government maintains that Fiji’s debt remains manageable, but the figures are likely to feature prominently in political debate as the country moves closer to the 2026 General Election, with economists and international agencies continuing to call for stronger fiscal discipline and measures to reduce future borrowing pressures.
