The government has announced new strategies aimed at supporting households amidst ongoing economic pressures while ensuring continued economic growth. Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, informed parliament that the economy is projected to grow by 3.2 percent in 2025, with robust domestic spending being a significant factor. This spending strength is underpinned by low interest rates, high consumer confidence, and increased remittances.
To address household needs, the Finance Minister emphasized that government policies—including an expansionary budget and targeted fiscal measures—are explicitly designed to provide direct support to families. The Macroeconomic Committee is reviewing projections, and due to current investment and consumption trends, there is optimism that growth estimates may be revised upwards.
Professor Prasad also highlighted encouraging inflation trends, noting a Consumer Price Index averaging negative 1 percent from January to August 2025. The stark shift in inflation, with a rate of minus 3.5 percent in August compared to 3.8 percent the previous year, illustrates significant price declines over recent months. Such shifts offer relief to households managing routine expenses, in line with government reforms that have improved revenue collections and bolstered funding for social welfare programs.
Reflective of sentiments from prior announcements, this optimistic economic outlook is supported by measures such as increasing minimum wages, enhancing social welfare allowances, and providing substantial educational assistance. These initiatives build on significant reforms such as VAT exemptions on essential goods, demonstrating a continued commitment to financial support for citizens.
The government also recognizes challenges posed by external economic conditions and maintains a strong stance on responsible fiscal management and inclusivity. By focusing on direct support and inclusive growth policies, there is a positive outlook for improving the quality of life for Fijians, reinforcing the country’s path toward economic resilience and equitable development. Overall, the initiatives and positive economic indicators point towards a hopeful trajectory for Fiji’s economy, aiming for sustainable growth that benefits all citizens.