Litia Cava 
[Photo Credit: Reuters]
The Reserve Bank of Fiji, in its June 2025 Economic Review, warns that persistent global tensions are weakening recovery efforts in vulnerable economies like Fiji.
The review highlights how negotiations between major economies conflict in the Middle East, alongside sluggish trade, continue to shake investor confidence and push up commodity costs.
Crude oil prices rose by 1.2 percent in May to US$63.90 a barrel after US strikes in Iran sparked fears of supply shocks.
However, prices later eased with diplomatic efforts. Global food prices fell by 0.8 percent, mainly due to better supply in grains and sugar.
Fiji’s key exports took a hit. Sugar prices dropped by 1.2 percent due to oversupply from India, while gold prices slipped slightly to US$3,315.40 per ounce as global investors shifted attention to digital assets like bitcoin.
The Reserve Bank also reported a widening merchandise trade deficit,$1.05 billion by March this year, as Fiji’s import bill surged by $175.6 million, outpacing growth in exports. Most of the import demand was driven by fuel and industrial equipment.
RBF states that global shocks, if prolonged, could weaken key sectors and place pressure on foreign reserves and inflation control, two of its core policy goals.
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