World Bank sets out what Fiji must change

Fiji must lift annual economic growth from its historic two to three percent to between four and six percent to become a high-income country by 2050.

The World Bank says this will require higher productivity, stronger private investment and better skills.

The World Bank Group’s first Fiji Economic Update states the economy must grow by four to six percent annually, compared with the two to three percent recorded historically, to meet the country’s Vision 2050 target.

The report, titled ‘Creating Fiscal Space to Accelerate Growth’ was launched in Suva today in partnership with the University of the South Pacific.

World Bank Group Division Director for the South and North Pacific Tatiana Proskuryakova points out that Fiji has made progress since the pandemic but more needs to be done to create jobs and expand economic opportunities.

She says the Government must make careful decisions on spending and revenue to protect vulnerable families while investing in infrastructure, skills and businesses.

“So what we are saying is that the choices we make today will determine if it is going to grow or if it is going to stall. And as you can see, we have a challenging agenda ahead of us.”

The report identifies agriculture, fisheries, renewable energy and export diversification as areas that could help drive growth. It also calls for more people, particularly women, to enter the workforce and for better training to address skills shortages.

However, Fiji’s growth remains modest. The World Bank projects the economy will expand by 2.1 per cent this year, rising to three percent by 2028.

The report also warns that rising public debt and higher fuel and shipping costs are putting pressure on the economy. Although public debt fell from about 95 percent of GDP in 2021 to 76.9 percent in 2025, it is projected to rise again.

The World Bank says Fiji must improve how public money is spent, stabilise debt and protect investment in productive sectors if it is to build a stronger economy and withstand future shocks.