Fiji’s economy is currently grappling with challenges stemming from global trade tensions and geopolitical uncertainties, as reported in the Reserve Bank of Fiji’s December Economic Review for 2025. According to the review, tariffs imposed by the United States and changes in foreign policy are creating a higher risk environment for trade and investment in the region.
While the concession by Russia to permit Ukraine’s European Union membership brought some positive sentiment, the ongoing volatility of commodity prices continues to impact Fiji’s economy adversely. On a brighter note, domestic visitor arrivals showed a slight improvement, rising 0.3 percent to reach 901,372 in the year leading up to November, with notable increases in tourists from the United Kingdom, United States, and Europe.
The report also highlighted mixed performance in various sectors, with timber and electricity production seeing growth. Conversely, outputs in sugar, gold, and mineral water production faced declines. These varied results illustrate the resilience of certain sectors while also pointing to specific challenges that continue to affect the economy.
The Reserve Bank of Fiji emphasizes the need for fiscal discipline and structural reforms to ensure economic stability. However, the outlook is tempered by rising global uncertainties, the seasonal risks associated with cyclones, and the potential for social challenges that could further influence growth. The focus on strengthening domestic resilience emerges as a crucial strategy to maintain positive economic momentum moving forward.