High living costs, labour shortages and outward migration are emerging as major threats to Fiji’s long-term development goals, according to the International Monetary Fund.
In its latest assessment of the Fijian economy, the IMF said living standards are under increasing pressure due to the high cost of essential goods, particularly food and transport, while wage growth has struggled to keep pace.
The report noted that outward migration continues to create labour shortages in key sectors, affecting both private businesses and the public sector’s ability to implement reforms and infrastructure projects.
The IMF said Fiji’s ambition of becoming a high-income economy by 2050 remains achievable but will require sustained investment, stronger productivity growth and major improvements in infrastructure, governance and climate resilience.
The Fund also highlighted the need for reforms to address skills shortages, improve the business environment and strengthen public investment management.
It warned that repeated climate-related disasters continue to damage infrastructure and divert resources away from development priorities, making resilience-building investments increasingly important.
The IMF concluded that stronger governance, better implementation of development plans and continued structural reforms will be critical if Fiji is to raise living standards and achieve its long-term economic objectives.
