The Reserve Bank of Fiji (RBF) has issued a cautionary statement regarding potential threats to the nation’s economic growth in the coming year. In their latest assessment, the Bank underscored various global and domestic factors contributing to this uncertainty, particularly geopolitical tensions in the Middle East, which may result in rising global commodity prices. Additionally, the current cyclone season poses risks to local economic activities.
The RBF identified several challenges confronting Fiji’s economy, notably newly implemented visa bond requirements by the United States and the anticipated rise in interest rates from its primary trading partners. Such developments could put further strain on the nation’s economic landscape. Furthermore, travel advisories issued by the Department of Foreign Affairs and Trade (DFAT) related to the ongoing HIV outbreak have the potential to negatively impact international visitor arrivals.
These compounding pressures threaten to impede Fiji’s projected economic growth rate of 3.0 percent for the year. Nevertheless, there are positive aspects to highlight. The report noted a 2.6 percent rise in inward remittances for 2025, reaching $1.36 billion. This growth has largely been driven by a notable increase in personal transfers via mobile network operators, which rose by 16.7 percent. Additionally, outward remittances recorded a 7.9 percent increase, totaling $539.9 million, mainly attributed to higher personal transfers from non-residents and outflows linked to emigrants.
While net remittances experienced a minor dip of 0.6 percent compared to 2024, the upward trends in remittance flows provide a beacon of hope for Fiji’s economy amid the daunting outlook. The resilience reflected in the growth of personal transfers illustrates the ongoing potential for support to the local economy even when faced with external challenges. This dynamic emphasizes the importance of remittances as a crucial factor in bolstering economic stability during turbulent times.