World Bank issues economic growth and debt warnings for Fiji

The World Bank’s first Fiji Economic Update, titled ‘Creating Fiscal Space to Accelerate Growth’, states that Fiji must increase its annual economic growth from the historical two to three percent to between four and six percent to achieve high-income status by 2050. To reach this target, the report recommends enhancing productivity, strengthening private investment, and improving workforce skills, particularly for women.

The report identifies several significant risks to Fiji’s economic stability. A combination of prolonged Middle East conflicts—which could keep fuel and shipping costs elevated—and intensifying El Niño weather patterns poses a threat. Specifically, the Bank warns that severe weather could lead to drought-related agricultural losses or cyclones comparable to Tropical Cyclone Winston, which caused damage equivalent to 25 percent of GDP in 2016.

Financial concerns include rising public debt and the potential for it to exceed 90 percent of GDP by 2028 if fiscal reforms are delayed or if severe weather events occur. While public debt decreased from approximately 95 percent of GDP in 2021 to 76.9 percent in 2025, the Bank emphasizes that the government must make careful spending decisions to stabilize debt and protect investments in infrastructure and productive sectors.