Aerial shot of Suva City [File Photo]

Fiji is poised for another year of robust growth, with several key indicators pointing towards significant tailwinds says Westpac Fiji’s Senior Economist Shamal Chand.

In his quarterly update on Fiji, Chand however says that growth is expected to remain below the historical average as Fiji emerges from a recovery-led bounce in growth.

Chand says the partial indicators to date point towards remarkable tourism sector activity as well as healthy performance in construction, investment and private sector credit growth.

He says Westpac Fiji has therefore revised its growth outlook upwards from 2.5 percent to three percent, adding 50 basis points to the initial estimates.

Chand highlights this adjustment is driven by a surge in tourism activity, promising investment and construction prospects, a manufacturing rebound, favourable wholesale and retail sales activity and the fiscal stimulus announced in the 2024-25 national budget.

He adds that since the provisional growth numbers for 2023 were lower than initially expected, this has prompted an upward revision of this year’s growth rate.

Looking ahead to the medium term, from 2025 onwards, Chand highlights economic growth is anticipated to stabilize at 3.4 percent, which aligns with the historical average.

Chand says that with another quarter remaining to go this year, Fiji is approaching 2025 on an excellent note and the current momentum is expected to carry onto the New Year.

With a few major investment projects in the pipeline, ongoing tourism sector capacity expansion plans supported by declining resident departure numbers, Chand stresses that they foresee this will be critical for Fiji to attain a growth rate of above 3 percent in the medium term.

He adds that while the recent announcement of the National Development Plan formulates strategies to work towards a sustainable growth path, it will depend heavily on timely implementation and stakeholder engagement.