Fiji’s economy is growing, but not fast enough to reach high-income status, according to the latest World Bank report “Fiji’s Future: Prosperity Through People and Productivity.”
The report warns that Fiji is “at a crossroads,” with its current 3 percent growth rate “at the upper end of its potential.”
To achieve high-income status within the next two decades, the country needs to grow at 5.7 percent annually.
“This significant acceleration in growth would stem from boosting investment and raising productivity,” the World Bank stated, noting that higher investment could add 0.7 percentage points to annual GDP growth, while improved productivity could add 2 percentage points.
The World Bank outlines five key policy areas for reform: enabling business, unleashing competition, promoting foreign direct investment (FDI), skilling healthy workers, and facilitating women into jobs.
“Reducing the state presence, especially through divesting loss-making businesses, would eliminate distortions and save public funds amounting to 1 percent of GDP,” the report said.
It also called for “strengthening job-matching and skilling programs to meet market demands” and improving access to affordable childcare to “support higher female labor force participation.”
While the report recognizes Fiji’s progress, it stresses that “none of this will be easy amid global headwinds.” It says bold political commitment, stability, and accountability are essential to sustain reforms.
“The reforms will both promote growth and build essential resilience for the coming period and beyond,” the World Bank concluded.
