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On Wednesday the 4th of March the Fiji Commerce & Employers Federation (FCEF) in partnership with Fiji Chartered Accountants (FICA) hosted the much-anticipated State of the Economy: Breakfast Talanoa. Bringing together over 180 delegates from across Fiji’s business community. To hear about and generate dialogue about the current and forecasted State of the Fiji Economy.

n Wednesday the 4th of March the Fiji Commerce & Employers Federation (FCEF) in partnership with Fiji Chartered Accountants (FICA) hosted the much-anticipated State of the Economy: Breakfast Talanoa. Bringing together over 180 delegates from across Fiji’s business community. To hear about and generate dialogue about the current and forecasted State of the Fiji Economy.

We are thankful to the Hon. Minister for Finance, Commerce and Business Development, Esrom Immanual and Mr. Ariff Ali, Governor of the Reserve Bank of Fiji for delivering the key note address of the day. Also to Ms Lisa Apted, Head of Business & Tax Advisory – KPMG for moderating the panel discussions.

Events like these create a unique opportunity for our private sector to engage meaningfully with the decision makers. Understand what the key focuses are for the government and challenges they are facing so that they (private sector) can make informed business decisions.

Key Economic Insights

Economic Performance and Outlook
The Governor of the Reserve Bank noted that Fiji has recorded four consecutive years of economic growth following the pandemic recovery. However, the pace of growth has moderated significantly from the strong rebound years. While the economy grew by 17.7% in 2022 and around 9% in 2023, growth in recent years has slowed to approximately 3–3.5%. Forecasts suggest growth will remain around 3% in the medium term unless new drivers of expansion emerge.
Tourism recovery and government expenditure were identified as the primary drivers of recent growth. However, both sources face limitations going forward, particularly due to fiscal constraints and slower tourism expansion.

Global Outlook

>Global growth remains steady at just over 3%, but risks persist.
>Ongoing geopolitical tensions, trade restrictions, inflationary pressures, and fiscal vulnerabilities continue to shape the global environment.
>Potential spillover effects for Fiji include higher imported inflation, softer tourism demand, and lower remittance inflows.

Domestic Performance
>Mixed sectoral performance:
>>Increases in mahogany, electricity, gold, and mineral water production.
>>Declines in wood chips and sawn timber.

>Increased domestic activity driven by stronger lending to the Wholesale, Retail, Hotels and Restaurants (WRHR) sector.
>Improved PAYE tax collection, vehicle registrations, and electricity consumption.
>Increased household incomes supported by a 2.6% increase in inward remittances.
>Second-hand vehicle registrations rose by 21.3%, while new vehicle registrations increased by 27.0% in 2025.

>Investment activity remains subdued:

>>New investment lending rose marginally by 0.2%.
>>Domestic cement sales declined by 2.1%.
>>Building Material Price Index increased by 0.9% annually.

>Trade balance pressures expected, with exports plateauing and imports rising.
>GDP projected to remain around 3%, below the 5–6% target range.
 
Fiscal Position and Policy Considerations

The Minister acknowledged that Fiji continues to operate in a constrained fiscal environment due to elevated debt levels following the COVID-19 pandemic. Government debt increased significantly during the pandemic period as public spending supported the economy.
 
Despite this, the government aims to continue supporting economic recovery through prudent fiscal management, targeted social support measures, and prioritisation of key infrastructure investments.
 
Government & Monetary Policy Perspectives
The Minister reaffirmed Government’s commitment to private sector-led growth, emphasising the importance of sustained dialogue and partnership. Key priorities outlined included:
>Prudent fiscal and debt management
>Addressing cost-of-living pressures
>Improving the ease of doing business
>Targeted investment in infrastructure and human capital
>Preparations underway for the 2026–2027 National Budget, with encouragement for private sector submissions

The Governor of the Reserve Bank highlighted the need to address structural constraints facing businesses, including:
>High cost of doing business
>Productivity challenges
>Skills shortages
>The Employment Relations Bill
>Broader regulatory and governance reforms

Both speakers underscored that achieving 5% GDP growth will require coordinated effort, strong execution of reforms, and a competitive private sector environment.

 
Looking Ahead

The discussion acknowledged emerging domestic risks, including:
Potential electricity tariff adjustments
A “wait-and-see” investment approach ahead of national elections
The ongoing impact of natural disasters


FCEF thanks all delegates for their active engagement and thoughtful questions. Events like this Breakfast Talanoa reinforce the importance of constructive dialogue in shaping Fiji’s economic direction.