{
  "title": "IMF Executive Board Concludes 2026 Article IV Consultation with Fiji",
  "publication": "IMF News, May 29, 2026",
  "sourceUrl": "https://www.imf.org/en/news/articles/2026/05/29/pr26178-fiji-imf-executive-board-concludes-2026-article-iv-consultation",
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  "summary": "The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for Fiji.[1] The authorities have consented to the publication of the Staff Report prepared for this consultation.[2]",
  "publishDate": "2026-05-29",
  "sections": [
    {
      "heading": "Economic activity and outlook",
      "content": "- Real GDP growth: 3.2 percent in 2025 (staff estimate).\n- Staff assessment: economic activity remained resilient through 2025, supported by solid tourism inflows, continued remittances, and fiscal stimulus.\n- Inflation dynamics: inflation fell sharply due to VAT rate reductions and lower duties on selected essential goods, then began to rise again as these temporary effects faded.\n- Monetary stance: Reserve Bank of Fiji (RBF) maintained the Overnight Policy Rate at 0.25 percent.\n- Shock and near-term outlook:\n  - Recent oil shock will challenge the recovery.\n  - Growth is expected to fall in 2026 because of higher oil prices, softer tourism demand, and elevated uncertainty.\n  - Inflation is projected to increase as rising fuel costs are reflected in domestic prices.\n  - Terms of trade effects from the oil shocks would widen the current account deficit."
    },
    {
      "heading": "Executive Board assessment and risks",
      "content": "- Directors agreed with the thrust of the staff appraisal and welcomed the continued recovery supported by tourism and domestic demand.\n- Risks and vulnerabilities highlighted:\n  - Vulnerability to external shocks and natural disasters.\n  - Elevated public debt.\n  - Widening external imbalances.\n  - Persistent structural bottlenecks that constrain policy space and weigh on living standards.\n- Policy priority emphasized: strengthening fiscal buffers and pursuing reforms to boost sustainable, inclusive growth."
    },
    {
      "heading": "Fiscal stance, debt, and public finance recommendations",
      "content": "- Fiscal stance in FY2025-26: substantially eased before the oil shocks; FY2025-26 budget targeted an overall deficit of around 6½ percent of GDP.\n- Directors' concerns:\n  - Expansionary fiscal stance increased fiscal and financing risks while public debt remains elevated.\n- Recommended actions:\n  - Rebuild fiscal buffers through gradual and growth-friendly fiscal consolidation.\n  - Prioritize targeted social assistance to help the most vulnerable.\n  - Strengthen public financial management, debt management, and public investment capacity.\n  - Reinforce the medium-term fiscal framework to strengthen policy credibility and improve transparency."
    },
    {
      "heading": "Monetary policy and exchange rate policy",
      "content": "- Directors' view:\n  - Exchange rate peg continues to serve Fiji well as a nominal anchor.\n  - Persistently high excess liquidity has weakened monetary policy transmission and reduced the effectiveness of the policy rate.\n- Recommended actions:\n  - Strengthen the monetary policy operational framework.\n  - Gradual normalization of liquidity conditions, supported by gradually raising the policy rate.\n  - Gradually ease exchange restrictions and capital flow measures, while safeguarding external stability."
    },
    {
      "heading": "Financial sector and structural reforms",
      "content": "- Financial sector assessment:\n  - Financial sector remains broadly sound; banks are well capitalized and liquid.\n  - Vulnerabilities warrant continued vigilance.\n- Recommended actions:\n  - Continue strengthening financial supervision, crisis preparedness, and the regulatory framework.\n  - Continue progress on strengthening the AML/CFT framework.\n  - Pursue sustained, well-sequenced structural reforms to support higher and more inclusive growth and improve resilience.\n  - Specific reform priorities: address infrastructure gaps, labor shortages, outward migration, and barriers to private sector development.\n  - Emphasize resilience-enhancing investment and engagement with development partners to strengthen capacity to adapt to climate change and natural disasters.\n  - Strengthen governance and reinforce the rule of law to support the investment climate."
    },
    {
      "heading": "Key statistics and projections (selected indicators from Table 1)",
      "content": "- Output and prices (percent change)\n  - Real GDP: 3.5 (2024), 3.2 (2025 Est.), 2.4 (2026 Proj.), 2.7 (2027 Proj.), 3.0 (2028 Proj.)\n  - GDP deflator: 6.1 (2024), -1.4 (2025 Est.), 2.2 (2026 Proj.), 2.5 (2027 Proj.)\n  - Consumer prices (average): 3.9 (2024)\n  - Consumer prices (end of period): -0.2 (2024), 0.0 (2025), 3.8 (2026)\n- Fiscal (percent of GDP)\n  - Revenue and Grants: 27.4 (2024), 29.1 (2025), 28.2 (2026), 27.8 (2027), 28.0 (2028)\n  - Expenditure: 30.8 (2024), 31.5 (2025), 34.6 (2026), 32.9 (2027), 31.8 (2028)\n  - Overall balance: -3.4 (2024), -2.5 (2025), -6.4 (2026), -5.1 (2027), -3.8 (2028)\n  - Primary balance: 0.6 (2024), 1.4 (2025), -2.2 (2026), -1.0 (2027), 0.4 (2028)\n  - Central government debt: 79.1 (2024), 78.7 (2025), 82.5 (2026), 83.6 (2027), 83.0 (2028)\n  - Central government external debt: 28.6 (2024), 27.7 (2025), 30.4 (2026), 29.5 (2027), 28.5 (2028)\n- External sector (percent of GDP)\n  - Current account balance: -7.8 (2024), -9.5 (2025), -12.5 (2026), -10.9 (2027), -9.7 (2028)\n  - Trade balance: -28.9 (2024), -29.8 (2025), -30.2 (2026), -28.4 (2027), -?\n  - Services balance: 18.8 (2024), 18.1 (2025), 16.9 (2026), 16.7 (2027), 16.5 (2028)\n  - Primary Income balance: -6.2 (2024), -5.3 (2025), -6.0 (2026), -5.6 (2027), -?\n  - Secondary Income balance: 8.5 (2024), 7.5 (2025), 6.9 (2026), 7.3 (2027), 7.8 (2028)\n  - Financial account balance ( - = inflows): -10.0 (2024), -7.5 (2025), -8.9 (2026), -7.3 (2027)\n  - FDI: -3.0 (2024), -4.6 (2025), -5.9 (2026), -6.3 (2027)\n  - Portfolio investment: 1.0 (2024)\n  - Other investment: -8.0 (2024), -3.9 (2025), -4.3 (2026), -2.4 (2027), -2.3 (2028)\n  - Change in reserve assets ( - =increase): 3.6 (2024), 2.1 (2025)\n  - Gross official reserves (in months of prospective imports): 5.5 (2024), 5.3 (2025), 4.5 (2026), 3.1 (2027)\n- Money and credit (percent change)\n  - Net domestic assets of depository corporations: 7.9 (2024)\n  - Claims on private sector: 11.3 (2024), 10.0 (2025)\n  - Broad money (M3): 7.7 (2024)\n  - Monetary base: -1.6 (2024)\n  - Central Bank Policy rate (end of period): 0.25\n  - Commercial banks deposits rate (end of period): 0.3\n  - Commercial banks lending rate (end of period): 4.6\n- Memorandum items\n  - Exchange rate, average (FJD/USD): 2.3\n  - Real effective exchange rate, average: 112.6 (2024), 107.5 (2025)\n  - GDP at current market prices (in millions of Fiji dollars): 13,538 (2024), 13,774 (2025), 14,419 (2026), 15,254 (2027), 16,098 (2028)\n  - GDP at current market prices (in millions of U.S. dollars): 5,968 (2024), 6,041 (2025), 6,352 (2026), 6,663 (2027), 7,013 (2028)\n  - GDP per capita (in U.S. dollars): 6,468 (2024), 6,508 (2025), 6,802 (2026), 7,093 (2027), 7,421 (2028)\n\nSource: IMF press release \"IMF Executive Board Concludes 2026 Article IV Consultation with Fiji\" (May 29, 2026).\n\n---\n\n\n References\n\n- Republic of Fiji and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- www.imf.org/Fiji\n- http://www.IMF.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2026/05/29/pr26178-fiji-imf-executive-board-concludes-2026-article-iv-consultation"
    }
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    "Published: May 29, 2026",
    "Real GDP growth: 3.2 percent in 2025 (staff estimate).",
    "Staff assessment: economic activity remained resilient through 2025, supported by solid tourism inflows, continued remittances, and fiscal stimulus.",
    "Inflation dynamics: inflation fell sharply due to VAT rate reductions and lower duties on selected essential goods, then began to rise again as these temporary effects faded.",
    "Monetary stance: Reserve Bank of Fiji (RBF) maintained the Overnight Policy Rate at 0.25 percent.",
    "Shock and near-term outlook:",
    "Directors agreed with the thrust of the staff appraisal and welcomed the continued recovery supported by tourism and domestic demand.",
    "Risks and vulnerabilities highlighted:",
    "Policy priority emphasized: strengthening fiscal buffers and pursuing reforms to boost sustainable, inclusive growth.",
    "Fiscal stance in FY2025-26: substantially eased before the oil shocks; FY2025-26 budget targeted an overall deficit of around 6½ percent of GDP.",
    "Directors' concerns:",
    "Recommended actions:",
    "Directors' view:",
    "Recommended actions:",
    "Financial sector assessment:",
    "Recommended actions:",
    "Output and prices (percent change)",
    "Fiscal (percent of GDP)",
    "External sector (percent of GDP)",
    "Money and credit (percent change)",
    "Memorandum items",
    "[Republic of Fiji and the IMF](http://www.imf.org/external/country/FJI/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[www.imf.org/Fiji](http://www.imf.org/%5bcountry)",
    "[http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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