Fiji’s economy continues to expand at a faster pace: Westpac

April 28, 2022 5:35 am

Arial Shot of Suva. [File Photo]

Westpac Fiji expects the Fijian economy to expand, but now at a faster pace.

This was highlighted in Westpac Fiji’s Quarterly Economic Update.

The report shows that this is possible because of the faster than anticipated economic recovery and better than budgeted fiscal performance, and in addition, the revised 2021-2022 national budget is expected to support the growing momentum in the economy.

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It adds that the revised national budget will also address some of the new challenges being faced in the post-pandemic world, including measures to mitigate inflationary pressures.

Westpac Fiji says against this backdrop, they see their previously outlined optimistic scenario to be a more likely path of rebound for the Fijian economy.

It adds that the real GDP is now anticipated to grow by 12.9 percent in 2022, ending three consecutive years of economic contraction.

The report highlights that growth is expected to continue progressively in 2023 and 2024 as tourism demand increases and confidence rebuilds.

Barring any major shock to the country, Westpac Fiji expects the momentum to pick up within the next two years with higher projected visitor arrivals and growth across all related sectors of the economy.

In light of the Russia and Ukraine conflict and the fact that most countries are now emerging from the worst of the pandemic, Westpac Fiji’s Quarterly Economic Update says the global economy is still projected to record another year of growth, though admittedly lower.