Fijian economy on track to grow for fourth consecutive year in 2025 by 3.4%

The Fijian economy is on track to grow for the fourth consecutive year in 2025 by 3.4 percent, following a 3.5 percent expansion in 2024.

The growth forecast is revised up marginally from the 3.2 percent projected earlier in June and is based on the latest available data and information.

Chairman of the Macroeconomic Committee and Governor of the Reserve Bank of Fiji, Ariff Ali says the economic backdrop has shifted since the last Macroeconomic Committee meeting.

Ali says on the external front, the US tariff concerns that were initially expected to weigh heavily on Fijian exports have somewhat eased through constructive dialogue and engagement with the US Trade Representatives, with a lower 15 percent tariff imposed instead of the 32 percent anticipated earlier, providing some relief to exporters in Fiji.

Domestically, economic projections have been updated to reflect the 2019 GDP base, released by the Fiji Bureau of Statistics in September 2025.

The update replaces earlier forecasts calculated under the 2014 base.

Ali says in addition, data up to the ten months of the year have been generally positive.

He adds consumption activity remains strong, sustained by higher incomes, remittances and Government spending.

The RBF Governor says the recent reduction in the Value Added Tax rate has helped ease costs for consumers.

He says the investment climate is improving, evidenced by an increase in the uptake of private and public sector construction projects reflected in the increased number and value of building permits issued, higher value of work done, and increased lending, supported by an accommodative monetary policy stance.

Growth in the forestry and logging sector has been revised upward driven by higher output from the timber industry, especially for pine and mahogany.

The growth rate for the public administration sector has been upgraded arising from the salary increment announced in the 2025-2026 National Budget, while stronger consumption/retail activity and higher vehicle sales have also lifted expectations for the wholesale and retail trade sector.

In addition, construction sector growth has been revised upward following a notable pickup in activity from the second quarter.