Economy Set to Grow by 3.2% in 2025: RBF

SUNBIZ

Economy Set to Grow by 3.2% in 2025: RBF

"For 2026 and 2027, growth is expected to be broad-based and return to its long-term trend of around 3.0 per cent," Mr Ali said.

by jernese macanawai

13 Jun 2025 16:33

Economy Set to Grow by 3.2% in 2025: RBF

Reserve Bank of Fiji Governor Ariff Ali.

More on SUNBIZ

$6m Invested into Havana Nightclub
2025-06-16
Call for Raju to Resign as President
2025-06-11
'Zero Tolerance for Worker Mistreatment'
2025-06-10
$750k Invested into Country Hotel
2025-06-06

The economy is expected to grow by 3.2 per cent in 2025, slightly lower than the 3.4 per cent initial forecast, the head of the Reserve Bank of Fiji (RBF) said on Wednesday.

This is based on the Macroeconomic Committee’s – which RBF Governor Ariff Ali is chairman of – assessment of several key factors.

These factors include:-

the global slowdown,
Government expenditure, which has boosted demand,
expectations that the upcoming National Budget would remain supportive of growth,
strong consumption,
accommodative monetary policy and
notable growth in domestic Value Added Tax collections, wage and salary, employment, remittances and bank credit.

“For 2026 and 2027, growth is expected to be broad-based and return to its long-term trend of around 3.0 per cent,” Mr Ali said.

“The service sectors remain the main contributors to growth, followed by the industrial and primary sectors. The Committee has also reviewed the 2024 growth rate, and the economy is now estimated to have expanded by 4.0 per cent.

“The key drivers of economic growth were the public administration, transport and storage, accommodation, ICT, wholesale and retail trade, financial services, manufacturing and agriculture sectors.

“The Gross Value Added (GVA) contribution to growth for 2024 was 2.3 percentage points, while indirect taxes account for 1.7 percentage points to the growth outturn.”

The Committee would review these projections in the last quarter of 2025.

Meanwhile, recent trends and industry feedback have indicated that visitor arrivals are now forecast to be flat this year, Mr Ali said.

This is a reversal of an earlier assessment by the Committee that visitor arrivals would rise further by four percent this year following record arrivals in 2024.

Feedback: [email protected]