The Fijian economy is projected to expand by 8.2 percent, an upgrade from the eight percent growth expected earlier.

Reserve Bank of Fiji Governor, Ariff Ali says the upward revision reflects the exceptional recovery in the tourism industry as up to October this year, 772,172 tourists graced our shores, around three percent higher than the same period in 2019.

By the end of the year, visitor arrivals are expected to be four percent higher than 2019 and reach a new record of 930,165 visitors.

Ali says the post-pandemic economic recovery in Fiji is now complete as the economy has returned to the 2019 level of GDP.

He says the spillover of higher tourist arrivals increased consumption spending and boosted aggregate demand.

Investment spending has also been rising, although at a relatively gradual pace. In contrast, the natural resource sectors continue to show dismal performance and have been a drag on growth.

Sugar, mineral water, gold and the forestry sector outputs noted annual contractions so far into the year due to industry-specific supply side issues.

Over the medium term, Ali says the economic growth is expected to return to trend.

According to Ali the current capacity constraints in the tourism industry is expected to keep annual visitor arrivals growth at around three percent, slightly lower than the trend before the pandemic.

However, Ali says investment spending is expected to fast-track from next year due to more clarity on taxes and incentives, pent-up demand from the pandemic and continuous improvements in the local business environment.

As a result, the economy is projected to grow by 3.4 percent in 2024 and a further three percent in 2025-26.

Ali says the services and industrial sectors are expected to be the leading drivers of growth while the primary sectors is expected to remain broadly flat.

The next review of the GDP forecasts will be before the 2024-25 National Budget.

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