Fiji: 2025 Article IV Consultation-Press Release; and Staff Report

IMF Staff Country Reports, June 20, 2025

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Fijian economic recovery continued in 2024.
Monetary and financial conditions remain accommodative, while the fiscal stance has tightened.
Growth was showing signs of slowing early in 2025.
Tariffs will have additional effects, both directly on goods exports and indirectly through slowing external demand.
Growth is projected at 2.6 percent in 2025, and to settle by 2027 and thereafter slightly below the pre-pandemic trend of 3.3 percent.
The outlook is very uncertain.

Slowing external demand from tariff effects poses downside risk to goods exports.
Natural disasters affect long-term prospects.
Emerging credit risks in the financial sector require attention.
Money laundering risks need safeguarding measures.

Rebuilding fiscal buffers should be a priority.
Implement growth-friendly consolidation that promotes a shift from current to capital spending.
Prepare social protection measures to shield the most vulnerable from a pronounced downturn.
Gradually adjust monetary policy to at least neutral levels.
Phase out exchange restrictions.
Financial policies should be attentive to emerging credit risks and safeguard against money laundering risks.
Significantly increase reform momentum to boost growth over the medium term.
Mobilize additional climate financing to address long-term impacts of natural disasters.

International Monetary Fund. Fiji: 2025 Article IV Consultation-Press Release; and Staff Report

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