Fiji Islands: Economic Outline
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Fiji is one of the most developed economies of the Pacific islands. However, the economy is vulnerable to natural disasters that weigh on growth. Cyclone Winston, the most powerful in the history of the archipelago, hit the country in 2016, causing significant damage (estimated at around 28% of the country’s GDP) to houses, infrastructure, and crops, which are still being under reconstruction. The country has been recovering well after the cyclone thanks to the reconstruction activities, the tourism sector, the recovery of agriculture production and an increase in household consumption expenditure; however, GDP turned negative in 2019, and the trend was exacerbated by the global COVID-19 crisis, which prompted the largest contraction on record. Nevertheless, the country’s economy has been experiencing a strong recovery in the last couple of years driven by the return of tourism and real GDP growth rebounded by an estimated 16% in 2022 according to the IMF. For 2023 and 2024, the IMF forecasts growth at 6.9% and 5.7%, respectively, although the risks to the outlook are tilted to the downside.
Due to the robust economic rebound, fiscal deficits are projected to decrease from 12.2% of GDP in FY2022 to 7.7% in FY2023. Nonetheless, the central government's debt continues to remain high at approximately 85% of GDP (IMF, March 2023). The current account deficit remained high at an estimated 14% of GDP in 2022, primarily due to the elevated global commodity prices and the partial recovery in tourism. However, the FX reserves remained comfortable at 6.2 months of anticipated imports, supported by concessional financing from donors and remittances. The rise in global commodity prices and a shortage of skilled labour could lead to an increase in supply-side inflationary pressures: inflation on a year-on-year basis has recently declined to 1.5% in February 2023 due to the stabilization of global commodity prices (the average rate for 2022 was estimated at 4.7%). The IMF forecasts a gradual decrease in inflation, to 3.5% this year and 2.8% in 2024. The islands have many natural resources: mining, forestry, fishery, and agriculture (sugarcane industry). The agricultural sector accounts for 14.5% of GDP, while industry and services represent 16.9% and 53.8% respectively (World Bank).
According to figures from the IMF, GDP per capita (PPP) reached USD 13,944 in 2022, although the World Bank estimates that one-third of the population still lives below the poverty line. At the end of 2021, the unemployment rate stood at 4.9%, as per the World Bank’s latest available data.
| Main Indicators | 2020 | 2021 | 2022 (E) | 2023 (E) | 2024 (E) |
|---|---|---|---|---|---|
| GDP (billions USD) | 4.48 | 4.30 | 4.84 | 5.39 | 6.11 |
| GDP (Constant Prices, Annual % Change) | -17.0 | -5.1 | 14.5 | 7.0 | 5.0 |
| GDP per Capita (USD) | 4,976 | 4,749 | 5,317 | 5,887 | 6,639 |
| General Government Gross Debt (in % of GDP) | 63.1 | 83.0 | 92.8 | 88.5 | 87.4 |
| Inflation Rate (%) | -2.6 | 0.2 | 4.5 | 3.5 | 3.0 |
| Current Account (billions USD) | -0.57 | -0.59 | -0.59 | -0.63 | -0.65 |
| Current Account (in % of GDP) | -12.7 | -13.7 | -12.1 | -11.7 | -10.7 |
Source: IMF – World Economic Outlook Database - October 2021.
Note: (e) Estimated Data
| Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Fiji Dollar (FJD) - Average Annual Exchange Rate For 1 GBP | 2.83 | 2.66 | 2.78 | 2.75 | 2.78 |
Source: World Bank - Latest available data.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
|---|---|---|---|
| Employment By Sector (in % of Total Employment) | 17.6 | 14.1 | 68.3 |
| Value Added (in % of GDP) | 14.5 | 16.9 | 53.8 |
| Value Added (Annual % Change) | 0.5 | -8.3 | -2.9 |
Source: World Bank - Latest available data.
| Socio-Demographic Indicators | 2022 | 2023 (e) | 2024 (e) |
|---|---|---|---|
| Unemployment Rate (%) | 6.5 | 5.5 | 5.0 |
Source: IMF – World Economic Outlook Database - Latest available data
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Labour Force | 359,388 | 362,136 | 357,260 |
Source: International Labour Organization, ILOSTAT database
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Total activity rate | 60.50% | 60.37% | 60.29% |
| Men activity rate | 79.52% | 79.32% | 79.22% |
| Women activity rate | 40.75% | 40.69% | 40.62% |
Source: International Labour Organization, ILOSTAT database
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
See the country risk analysis provided by Coface.
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
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Latest Update: September 2023
