# Fiji economic growth and tourism sector performance > Developing situation record from CLSTR: https://clstr.news/situations/fiji-economic-growth-and-stability-outlook > Updated: 2026-10-31T18:22:24.000Z. Sources: 6. Developments: 2. The World Bank has issued its first Fiji Economic Update, titled ‘Creating Fiscal Space to Accelerate Growth’. The report states that Fiji must increase its annual economic growth from historical levels of two to three percent to between four and six percent to reach high-income status by 2050. To achieve this, the Bank recommends improving workforce skills, strengthening private investment, and enhancing productivity. The Bank identified several risks to stability, including rising public debt which could exceed 90 percent of GDP by 2028 if reforms are delayed. External threats include potential fuel and shipping cost increases due to Middle East conflicts, as well as severe weather patterns like El Niño that could cause agricultural losses or cyclones. In response to economic needs, Fiji is working to diversify its tourism sector, which accounts for approximately 40 percent of the nation’s economic output. Recent data shows significant economic momentum driven by a surge in international tourism. International visitor arrivals grew by 3.7 percent during the first nine months of 2026, supported by increased demand from Australia, the United States, and Europe. The hospitality sector has also seen a boost, with hotel turnover increasing by 10.5 percent for the year ending in June. This growth is bolstered by expanded air connectivity and increased flight frequencies to destinations such as the Gold Coast, Hong Kong, and Vancouver. The government continues to target a rise in tourism earnings from 3 billion Fijian dollars to 4 billion in the coming year, with a long-term goal of reaching 1.2 million annual visitors by 2027. ## Timeline ### 2026-10-31: Fiji tourism sector drives economic growth through increased arrivals Fiji's tourism sector is fueling economic growth, with international arrivals up 3.7 percent and hotel turnover rising 10.5 percent due to increased demand from Australia, the US, and Europe. 3 sources. https://clstr.news/cluster/fiji-targets-economic-growth-through-tourism-diversification ### 2026-10-28: World Bank issues economic growth and debt warnings for Fiji The World Bank warns Fiji must boost annual growth to 4–6 percent to reach high-income status by 2050, citing risks from rising debt, high shipping costs, and potential extreme weather events. 4 sources. https://clstr.news/cluster/world-bank-issues-economic-growth-and-debt-warnings-for-fiji --- Cite as: Fiji economic growth and tourism sector performance. CLSTR, https://clstr.news/situations/fiji-economic-growth-and-stability-outlook