[Source: Supplied]

Fiji is backing up its strong economic rebound of last year with another solid performance in 2023 says ANZ’s International Economist Kishti Sen.

In ANZ’s latest research on Fiji titles ‘Balancing the Economy’, Sen says visitor arrivals, the cornerstone of Fiji’s economy, are tracking above 2019 levels and projected to reach 940,000 for the first time this year.

Australian leisure travellers are leading the charge, with 450,000 arrivals expected in 2023.

If realised, Sen states this will be 22.6% higher than the previous record reached in 2019.

New Zealand tourists for the first nine months of this year totalled 167,098 and he says that figure too is expected to surpass the previous record of 205,998 achieved in 2019.

Sen says while international tourism generates foreign currency revenue and supports Fiji’s balance of payments, its real contribution comes from the number of jobs it supports and sustains.

With the return of inbound demand in 2022, after the pandemic-induced border shutdowns of 2020 and 2021, the tourism economy is at full employment, and total formal-sector wage and salary earner numbers are sitting at 125% of pre-pandemic levels.

The strong bounce in jobs, wage increases as well as another record year for private money transfers from abroad are together supporting household income and consumer demand.

Sen says although the latter is offset somewhat by the increase in the rate of Value Added Tax to 15% from 9% from August 1st and still elevated price inflation for essential consumer goods.

Business investment has been bumping around at the bottom of the cycle, but the Government is running an expansionary budget that is providing stimulus to the economy.

All in all, Sen says their research is predicting GDP to grow by 5.8% in 2023.

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