World Bank forecasts Fiji’s growth at 3.1% – FBC News

The World Bank’s latest Pacific Economic Update estimates that Fiji’s growth will slow to 3.1 percent this year, with a slight recovery projected for 2025, aligning with pre-pandemic trends.

Senior Country Economist Mehwish Ashraf attributes Fiji’s slowdown to several factors, including the exodus of skilled workers.

Ashraf adds skilled labour migration from Fiji is impacting growth in the tourism, agriculture and the BPO sectors.

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She adds that the high inflation rate is also impacting growth forecasts.

“And also because of the inflation, there is a dynamic that’s happening on the growth and the inflation side. And that’s how we are looking at growth rate of around 3.1% per annum for 2024. And of course, we are then seeing a slightly increased growth for next year, which is around 3.3%.”

The World Bank’s October report, titled “Diminishing Growth amid Global Uncertainty: Ramping Up Investment in the Pacific,” also states that after a temporary rise to an estimated 5.2 percent in 2024, driven by VAT and other tax adjustments, inflation is expected to ease toward the Reserve Bank of Fiji’s target of three percent in 2025.

According to RBF, inflation moderated to 5.4 percent in August from 6.8 percent in July and is anticipated to moderate to around four to five percent by year-end.

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