SUVA, June 24 (Xinhua) -- Fiji's economic growth forecast for 2026 has been significantly reduced as rising fuel prices, inflation and ongoing geopolitical tensions continue to place pressure on the country's economy.
Ashwin Deo, head of Department at the College of Business, Hospitality and Tourism Studies at the Fiji National University, said the latest macroeconomic commentary paints a challenging outlook, with economic growth now expected to slow from the earlier forecast of 3 percent to 1.5 percent, Fiji Broadcasting Corporation news website reported on Wednesday.
Deo said the sharp revision is largely linked to escalating tensions in the Middle East, which have contributed to higher global fuel prices and increased transportation costs.
He said inflation remains another major concern, with Fiji's inflation rate reaching about 3.9 percent last month, increasing the cost of goods and services and putting additional pressure on households.
Despite these challenges, Deo said the tourism sector and strong remittance inflows continue to provide important support for the economy by generating income and maintaining consumer demand.
However, he warned that supply-side pressures, including imported inflation and rising fuel expenses, are continuing to drive up prices across the country. ■