The Fijian economy has performed above expectations in the first six months of this year, despite the fragile global economy.

Senior Economist, Krishal Prasad, in his quarterly economic update ‘Westpac Wave’ says the positive performance has been led by a robust tourism sector, increased certainty in the business environment and pent-up demand.

Visitor arrivals reached 636,312 in 2022 (71% of 2019 levels), a vast increase from 31,618 in 2021, and the momentum continues this year.

In the year to May, visitor arrivals stood at 327,392, already 51.5 percent of 2022 levels and 36.6 percent of total arrivals in 2019.

Prasad says with peak tourism season underway, it is highly probable that visitor arrivals will surpass pre-pandemic levels earlier than expected.

He adds adding to this momentum is the positive impact of the 2023-
24 National Budget, which targets post-pandemic economic recovery while emphasising macroeconomic stability and fiscal sustainability.

The senior economist says at the end of the financial year 2022-23, the government is expected to record a net deficit of around $750.3 million, equivalent to -6.2 percent of GDP, lower than the budgeted net deficit of -7.4 percent and -11.9 percent net deficit for financial year2021-22.

Prasad says the Budget on balance adds positively to the general economic outlook through higher spending in key priority sectors, which will further enhance growth momentum.

At the same time, he says the reforms and realignment of tax policies and incentives will provide a conducive environment for investment, rebuild confidence and ensure sustainable inflows of government revenues.