Deputy Prime Minister and Finance Minister Professor Biman Prasad has pointed out how global migration trends and economic factors are shaping remittances, a key income source for many Fijian families.

Prasad says the government has been closely monitoring international developments particularly those impacting migration patterns as changes in these trends directly influence the flow of remittances into the country.

Despite initial expectations of a decline due to the COVID-19 pandemic, remittances have remained steady, driven by the increasing number of Fijians seeking work abroad.

“We are mindful of some of those variables and when we do our policies, budgets, when we forecast our revenue, consumption, we take all these variables into account.”

Prof Prasad says that the number of Fijians migrating for work or for education increased in 2022 and continued into 2023, with more than 25,000 people leaving the country, compared to just a few thousand during the height of travel restrictions in 2020 and 2021.

Deputy Prime Minister and Finance Minister Professor Biman Prasad

The surge in migration reflects a global reshaping of the labor market. Fijians have increasingly sought employment in countries like Australia and New Zealand, where labor demand remains strong despite shifts in immigration policies.

However, Prof Prasad pointed out that the high cost of living in these countries has made some Fijians reconsider their migration decisions.

He explained that the cost comparison between living in Fiji and abroad is a critical factor.

For example, while earning $25,000 in Suva might feel similar to earning $100,000 in Sydney, the reality of high living costs in destination countries can shift that perception.

With migration slowing in recent years due to stricter immigration policies and rising costs, fewer people are leaving for work, which could potentially affect remittance flows.

However, Prof Prasad remains confident that remittances will not drastically decline.

He pointed out that Fiji’s diaspora continues to be a reliable source of support, with seasonal workers, rugby players and security personnel still sending money back home.

The government is factoring these shifting migration patterns into its economic planning.

Prof Prasad said that the government’s approach to revenue forecasting and budget adjustments is closely aligned with these trends.

By closely monitoring migration and remittance dynamics, Prof Prasad said that the government was ensuring that its financial strategies remain responsive and adaptable to the evolving global economic landscape.