[Photo: FILE]

Building investor confidence and strengthening public finances are critical to supporting private sector-led growth in Fiji.

USP Senior Lecturer in Economics Neelesh Gounder says political stability is essential to maintaining that confidence, while Fiji Commerce and Employers Federation Chief
Executive Edward Bernard is calling for greater restraint in government spending.

Both spoke at the launch of the World Bank’s 2026 Fiji Economic Update.

Gounder says political discussions can affect the economy, especially when they shape how investors view Fiji’s stability.

“I think political stability is really important. If you look at some of the constitutional reforms, although they are well-intended in nature, the debate, discussion, and eventual discussion spilling into social media can have a huge implication in terms of how investors perceive political stability and the economic scenario. There is a very close relationship between political stability and economic stability.”

Gounder says clear and accurate communication is needed to reduce uncertainty and strengthen confidence among businesses, investors and consumers.

“The messaging is really important. At the moment, there is a lot more noise than the real information out there. We need to ensure how we provide the real information, the correct information. Misinformation is also playing a part in contributing to some of the challenges we are facing now.”

While Gounder highlights confidence, FCEF Chief Executive Edward Bernard says the government must also move quickly to address pressures on public finances.

“When the national budget was passed, and we realised that there was high expenditure and reduced revenue, there was a sobering acknowledgement that the private sector would need to drive the economy. And I think two months down the line, we’re now looking at this situation through this report. So I think, you know, accelerating fiscal consolidation and restrained government expenditure, I think we need to move into that very, very quickly.”

Gounder says encouraging private investment must go alongside efforts to diversify the economy, improve productivity and address labour shortages.