Fiji’s economy is facing significant challenges due to global trade tensions and geopolitical uncertainties, according to the Reserve Bank of Fiji’s December Economic Review for 2025. The report highlights that tariffs imposed by the United States, coupled with shifts in foreign policy, are creating a heightened risk environment for trade and investment in the region.
Despite these challenges, there was a glimmer of hope with Russia’s concession allowing Ukraine’s European Union membership, which has fostered some positive sentiment. However, the fluctuating commodity prices continue to exert downward pressure on Fiji’s economic performance.
On a positive note, domestic visitor arrivals have seen a slight bump, increasing by 0.3 percent to 901,372 in the year leading up to November. This growth is largely attributed to a rise in tourists from the United Kingdom, United States, and Europe, suggesting a recovery in tourism, a key economic sector.
The review indicates a mixed performance across various sectors; while timber and electricity production experienced growth, outputs in industries such as sugar, gold, and mineral water have declined. These contrasts showcase the resilience of certain sectors amid ongoing economic challenges.
The Reserve Bank of Fiji stresses the importance of fiscal discipline and the implementation of structural reforms to maintain economic stability. Nevertheless, the outlook remains cautious due to rising global uncertainties, seasonal cyclone risks, and potential social challenges that could impact growth. The emphasis on bolstering domestic resilience is becoming increasingly vital to sustain positive economic momentum in the future.