FIJI’S economy is on track to outperform official projections.
Speaking on The Lens@177 acting Prime Minister and Finance Minister Professor Biman Prasad said growth is already rebounding strongly with further acceleration expected in 2025,
He said the coalition government’s reforms had stabilised public finances, lifted confidence and spurred investment.
“In the 2025-26 budget we continued the momentum … our debt to-GDP ratio was below 80 percent and we reduced the deficit from 15 to 12.5 percent,” he said.
“This was the first time after so many years that … we collected more revenue than what we had forecasted in the budget by about $185million.”
Prof Prasad said strong consumption, vehicle sales and VAT receipts show “we have a healthy economic growth, we have a healthy social support policy… and a healthy rise in people’s income”.
The acting PM is positive that GDP growth could top the 3.2 per cent forecast for 2025.
“We may actually end up with a higher level of growth, given all the investments that are taking place.
“That means more jobs for people, better income, better spending, better revenue for government.”
Prof Prasad said the government’s clear national development plan and reform agenda are “not a pie-in-the-sky dream” but a pathway to highincome status by 2050.
“Business as usual will not do,” he said, pointing to new incentives for investors, public-private partnerships in power and water, and an aggressive tourism build-out as key drivers of future growth.
Prof Prasad made the comments in response to questions on whether Government is taking concrete steps to boost the economy to higher economic growth.
Inflation falls seven straight months
FIJI has recorded seven consecutive months of falling or negative inflation, with Acting Prime Minister and Finance Minister Professor Biman Prasad saying the trend proves cost-cutting measures are working.
In response to a question on how the 2025- 2026 Budget would cushion Fijians against further price shocks, Prof Prasad told The Lens@177 that the Reserve Bank and Bureau of Statistics data show inflation easing sharply.
“In this quarter, this last month, we also saw inflation rate going down,” he said.
He credited government duty and VAT cuts plus tighter monitoring of retailers.
“The effect of duty reduction, the effect of VAT reduction, is being passed on to the people and we see that in the prices.”
A joint taskforce of the FCCC, FRCS, Finance Ministry and Consumer Council “has done a lot of good work in making sure that the prices are passed on too”.
While warning that imported costs can still rise despite zero duty, Prof Prasad said government policy cushions shocks by lifting incomes at the same time.
“We not only focused on policies to reduce prices, we also focused on raising people’s income.”
The minister said critics “ignore and lie about the cost-of-living “pressure but spending and VAT receipts show “consumption has remained buoyant” and household incomes are up.
He acknowledged global risks but noted oil prices have recently fallen, easing pressure on domestic prices.
“We’re not saying that we’re going to always feel the negative territory… but the uncertainty we anticipated in the 2025-26 Budget may not be as big,” he said.
Tourism boom defies predictions
TOURISM demand is outstripping supply and driving investment across Fiji, with the government rolling out new incentives to spread benefits beyond resorts, Acting Prime Minister and Finance Minister Professor Biman Prasad says.
“When we came into government, everybody was saying, oh no tourism boom will be over,” he said when asked how Fiji is coping in an environment of a global economy that dealing with US tariffs.
“There is short of accommodation,” Prof Prasad told The Lens@177.
“We have not seen that.
“We see the boom continuing.
“We see more investments coming in, more hotels are being built.”
He said government is using tax incentives to support operators building new infrastructure such as village tours and highland access.
“We want the benefit of tourists to go” to communities, Prof Prasad said.
The minister highlighted the $400million tourism development project at Bua and the upgrading of the airport.
“Bua is booming… not only in terms of the project that we put in, but other investments.
“Fiji is going to be one of the most attractive tourism destinations, if it is not already.”
Tourism is also a key pillar of Government’s push for 5 per cent-plus annual growth.
“The demand is actually inviting the supply.
“More B&Bs, more hotels, more investments in those areas.”
He said agriculture’s expansion and public-private partnerships in power and water infrastructure will complement the tourism boom and lift the wider economy.
