Fiji’s economy in the South Pacific is expected to grow at 6.3% in 2023 and moderate to 3% in 2024, according to a new economic report released by the Asian Development Bank (ADB).
He Asian Development Outlook (ADO) April 2023, the latest edition of the ADB’s flagship economic report, notes that tourism led a strong recovery in Fiji in 2022, fueled by visitors staying longer and spending more.
The ADO April 2023 report states that tourism will continue to be the main driver of growth for Fiji in 2023, building on its success in the face of intense competition from other regional tourism destinations such as Indonesia and Thailand.
Fiji’s prospects are boosted by plans to increase arrivals from North America, with the national carrier seeking to expand direct air connections beyond Los Angeles and San Francisco. Direct flights to Japan and Hong Kong also resume this month.
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“To maintain growth momentum and foster diversification, Fiji will need to put in place proactive labor market policies to address the growing shortage of semi-skilled and skilled workers,” ADB Pacific Sub-Regional Office Regional Director said in Fiji, Aaron Batten.
Increased emigration is helping to drive remittances to record levels and provide an economic safety net for many Fijian families. However, the private sector reports increasing difficulties in attracting staff qualified enough to meet their business needs.
To address these challenges, Fiji can continue to focus on training and skills development, job matching programs and initiatives to boost labor force participation rates.
The report indicates that the positive effects of public spending, as well as the boost to tourism and remittances, extended to transportation and wholesale and retail trade. Commercial bank credit also increased as confidence in the economy strengthened.
Lower inflation is expected in 2023, at 4.2%, and in 2024, at 3.5%, in line with the easing of global commodity prices.
