The Reserve Bank of Fiji (RBF) has issued a warning regarding various global and domestic factors that may negatively affect the country’s economic growth this year. In its recent review, the Bank highlighted geopolitical tensions, particularly in the Middle East, which could lead to an increase in global commodity prices. Additionally, the ongoing cyclone season presents potential risks to local economic activity.
The RBF pointed out several challenges, including newly introduced United States visa bond requirements and the likelihood of interest rate hikes from key trading partners, which could further strain Fiji’s economy. Moreover, travel advisories, specifically those issued by the Department of Foreign Affairs and Trade (DFAT), could influence international visitor arrivals, particularly those related to the ongoing HIV outbreak.
These combined pressures could hinder Fiji’s projected economic growth rate of 3.0 percent for the year. On a more positive note, the report revealed that inward remittances increased by 2.6 percent in 2025, amounting to $1.36 billion. This growth has been largely driven by a significant rise in personal transfers via mobile network operators, which surged by 16.7 percent. Outward remittances also saw an increase of 7.9 percent, totaling $539.9 million, mainly fueled by higher personal transfers from non-residents and outflows related to emigrants.
Despite a slight decline of 0.6 percent in net remittances compared to 2024, these positive trends in remittance flows offer a glimmer of hope for Fiji’s economy amidst the challenging outlook. The resilience shown in personal transfer growth showcases the potential for continued support to the local economy, even in the face of external pressures.