SUVA, Nov. 15 (Xinhua) -- The Fiji economy is now forecast to grow by 3.8 percent this year, an upward revision from the 2.8 percent projected in June.
The upgrade in economic growth reflects notable improvements in several partial indicators from the middle of the year.
Ariff Ali, macroeconomic committee chair of the Reserve Bank of Fiji, said that underpinning the higher growth is the better-than-expected outturn in visitor arrivals, which grew by 6.3 percent in the year to September, almost twice the projected increase in arrivals.
Consumption spending has gathered pace, supported by higher incomes and remittances, tourism-driven demand, higher government spending, and the pickup in new lending, Ali added.
He said that investment activity continues to progress but at a slower-than-desired pace.
Although labor shortages are easing and the ease of doing business is gradually improving, Ali said investors still face a relatively high-cost environment, impacting both the completion of existing projects and the commencement of new projects.
Economic growth for 2025 has now been upgraded to 3.4 percent from 3 percent expected earlier.
Ali said the service and related sectors remain the main contributors to growth, followed by industrial and primary sectors. ■