Fiji is among Pacific nations facing growing pressure from rising debt servicing costs, according to the Economic and Social Survey of Asia and the Pacific 2026 released by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
The report highlights increasing interest payments across the region, warning they are beginning to crowd out critical spending on sectors such as health and education.
In 2024, the median net interest payments-to-revenue ratio across Asia and the Pacific stood at 5.6 per cent, with at least nine developing countries spending more than 10 per cent of government revenue on interest repayments.
ESCAP noted that several Pacific economies, including Fiji, Papua New Guinea and Tonga, are grappling with high debt repayment burdens while relying heavily on limited and often volatile revenue sources.
The report said many Pacific countries depend on national trust funds supported by development partners, as well as non-tax revenues such as fishing licence fees — income streams that can fluctuate significantly.
Concerns have also been raised about a potential decline in official development assistance, which could further strain Fiji’s ability to invest in climate resilience and sustainable development while managing debt obligations.
ESCAP warned that rising interest payments in some countries are already exceeding public spending on essential services for a significant portion of the population, underscoring the growing fiscal challenges facing the region.
