Growth was broad-based in Fiji in 2014, as investor confidence strengthened in the run-up to the September election and persisted thereafter. Macroeconomic policy continues to be mildly expansionary, with investment in infrastructure, particularly transport, helping to boost growth. While growth has been sustained over the past 5 years, tightening fiscal conditions will require the implementation of structural reforms announced in the 2015 budget to further encourage private investment and rebalance the economy.
|Selected Economic Indicators (%) - Fiji||2015||2016|
|Current Account Balance (share of GDP)||-9.8||-8.7|
Source: ADB estimates.
The Fiji economy is estimated to have grown by 4.6% in 2013 and 4.2% in 2014. The economic expansion that began in 2010 has been one of the longest sustained periods of growth since independence in 1970. Greater government capital expenditure, higher remittance income, and improved business confidence in the run-up to the elections held in September 2014 saw new lending for consumption increase by 72.8% and for investment by 11.3%. These trends have contributed to record growth in private sector investment, which is expected to reach 13.5% of the gross domestic product in 2014.
Indicators suggest that growth will moderate slightly in 2015 to 4.0% as the economy navigates a transition in its growth drivers. Tourism is expected to continue to grow at a steady pace, while current sugar and gold prices will make it hard to maintain growth in these industries in the coming year.
Excerpted from the Asian Development Outlook 2015.