[ Source: Fiji Government ]

Fiji’s economic vulnerability, rooted in its reliance on imports and sensitivity to global market fluctuations, emerged as a key concern in President Ratu Naiqama Lalabalavu’s 2025 Parliamentary address.

With the country’s recovery to pre-pandemic levels, Ratu Naiqama warned of the risks associated with a narrow economic base that leaves little control over inflation and supply chain disruptions, especially in key sectors like petroleum.

This vulnerability, he noted, calls for immediate action to diversify the economy.

“We are taking proactive measures to successfully implement major development-funded projects through foreign development assistance. This will ensure a positive inflow of funding through effective investment, rather than the negative gearing ratio that we are currently experiencing.”

Ratu Naiqama outlined a strategy to reduce Fiji’s dependence on a few sectors by prioritizing growth in agriculture, tourism, and digital transformation.

He pointed out the role of micro, small, and medium-sized enterprises (MSMEs) as essential in broadening the economic base, stressing that targeted investments would spur innovation and economic expansion.

Furthermore, strengthening infrastructure, including roads, ports, and energy systems, was identified as key to enhancing productivity and building long-term economic resilience.

Ratu Naiqama also placed emphasis on inclusivity in economic growth. He stated that prosperity should not be narrowly defined by growth figures but should also include efforts to improve the well-being of vulnerable populations, such as the elderly, people with disabilities, and low-income families.

Ratu Naiqama said that strengthening social protection programs to ensure these groups have access to essential services was identified as a cornerstone of a just and prosperous society.

He noted that external risks continue to pose a challenge to Fiji’s economic stability, and Ratu Naiqama cautioned that geopolitical tensions and climate change remain major threats to Fiji’s medium-term outlook.

However, he expressed confidence that with sustained reforms, fiscal discipline, and political stability, the country could achieve growth rates of up to five percent.

The need for institutional reform was another focus.

Ratu Naiqama called for a review of Fiji’s Constitution, urging that it be updated to reflect the evolving aspirations of the population, particularly in terms of fairness, inclusivity, and justice.