Fijian economy expected to increase by 8 percent in 2023 – Ali

The growth projection for the Fijian economy in 2023 is revised upward to 8.0 percent from the 6.0 percent envisaged in November 2022.

Reserve Bank of Fiji Governor and the Chairman of the the Macroeconomic Committee Ariff Ali says the key sectors contributing to the upward growth projection are the accommodation and food services, transport and storage, agriculture, manufacturing, wholesale and retail sales, finance and insurance, administrative services, construction and net indirect taxes.

Ali says for 2022, given the better-than-expected rebound in tourism and related sectors, the Fijian economy is estimated to have grown by 18.6 percent, higher than the 15.6 percent previously projected.

He adds the service sector and net indirect taxes contributed the most to the revised growth estimate.

In 2024 and 2025, Fiji’s economy is forecast to return to the pre-pandemic trend and grow by 3.8 percent and 3.0 percent, respectively.

Ali says despite the upward revision to the growth projection for this year, risks to the outlook are tilted to the downside.

He says the global headwinds are from the continued geopolitical tensions, rapid interest rate hikes in advanced economies and the possibility of global recession.

Ali adds domestic headwinds include uncertainty surrounding tax policies and the extent of fiscal consolidation in the upcoming national budget, high emigration, climate change, and natural disasters.