Ariel shot of the Suva Harbor. [File Photo]

Fiji’s economy is projected to grow by 6.3 percent this year, according to a new economic report released by the Asian Development Bank.

Regional Director of ADB’s Pacific sub-regional office Aaron Batten says tourism led a strong recovery in the country last year, boosted by visitors who stayed longer and spent more money.

The report says tourism will continue to be the main driver of growth for Fiji, with a moderate growth of 3.0 percent projected for 2024.

Regional Director of ADB’s Pacific sub-regional office Aaron Batten. 

Batten says to maintain growth momentum and encourage diversification, Fiji will need to put in place proactive labour market policies to address rising shortages of semi-skilled and skilled workers.

He says increased emigration is helping to boost remittances to record levels and provide an economic safety net to many Fijian families.

According to the report, the private sector is reporting rising difficulties in attracting sufficiently qualified staff to fill their business needs.

Batten says Fiji can address these challenges by enhancing its focus on training and skills development, job-matching programs, and initiatives to boost labour force participation rates.

Lower inflation is expected this year at 4.2 percent and 3.5 percent in 2024, in line with easing global commodity prices.

The ADB report says the positive effects of government spending, as well as a boost in tourism and remittances, spilled over into transport, wholesale, and retail trade.

Credit from commercial banks also increased as confidence in the economy strengthened.