World Bank Group’s first Fiji Economic Update outlines how Fiji can protect households, rebuild fiscal buffers and unlock stronger, more resilient growth
SUVA, October 26, 2026 – Fiji has made important economic progress since the pandemic, but its room to respond to future shocks is narrowing. Sustaining stronger growth will require higher productivity, stronger investment, enhanced fiscal discipline, and a broader economy according to the World Bank Group’s first Fiji Economic Update released today in Suva.
Launched in partnership with the University of the South Pacific, the report—titled “Creating Fiscal Space to Accelerate Growth—projects the economy will grow by 2.1 percent in 2026 before recovering to 3.0 percent by 2028. Higher fuel and shipping costs are squeezing household budgets, while recent policy measures and the new external shock have begun to reverse Fiji’s earlier fiscal gains. Public debt, which fell from about 95 percent of GDP in 2021 to 76.9 percent in 2025, is projected to rise again.
“Fiji has made real progress. Now is the time to build on it so growth supports jobs, opportunities, and a more resilient future for Fijians,” said Tatiana Proskuryakova, World Bank Group Division Director for the South and North Pacific. “Better-targeted support and careful choices about spending and revenue can protect vulnerable families while continuing to invest in infrastructure, skills and private-sector growth. Rebuilding fiscal space is about giving Fiji more choices to invest in its people while remaining able to respond to the next shock.”
The report identifies opportunities to unlock stronger and more resilient growth by diversifying Fiji’s export base, expanding renewable energy, and strengthening agriculture and fisheries value chains alongside stronger private investment. Addressing skills shortages and increasing women’s participation in the workforce could further strengthen Fiji’s growth potential by making full use of its productive potential.
The report finds that targeting assistance to vulnerable households can provide more effective support than broad-based relief, while making better use of limited public resources. It recommends a practical approach: target support to those who need it most, improve the quality of public spending, stabilize debt and protect investments that support growth and jobs. Stronger social protection and disaster financing can also help Fiji prepare for future shocks.
Fiji’s Vision 2050 ambition to achieve high-income status will require a more ambitious growth rate, roughly doubling the historical growth rates from 2-3 percent to 4-6 percent. The report finds that this will require higher productivity, a more diverse economy, greater investment in people and skills, and higher workforce participation.
