Economists and policymakers have raised concerns that Fiji’s economic recovery and growth trajectory are not translating into stronger livelihoods, productivity gains, or long-term resilience, warning that urgent reforms are needed to avoid future economic vulnerabilities.

Speaking during the State of the Fijian Economy Dialogue 2026 at the Grand Pacific Hotel, senior economists and policy experts said while Fiji’s economy has recovered from the COVID-19 pandemic, structural weaknesses remain deeply entrenched.

Senior Economist at the World Bank, Dr Naomi Mathenge, said Fiji’s growth has largely returned to pre pandemic levels but warned the country is not achieving the stronger growth rates needed to secure long-term prosperity.

She said although economic growth had resumed, many workers remained concentrated in low-productivity sectors, limiting improvements in incomes and living standards.

“Growth has not translated into livelihoods for most people,” she said.

Dr Mathenge highlighted that female labour force participation remains around 40 percent compared to nearly 80 percent for men, while around 19 percent of young people remain outside employment, education, or training.

She said Fiji must better utilise women and youth participation while investing more heavily in skills development and productivity improvements.

“We need jobs, skills and productivity because that is what strengthens human capital and creates resilience,” she said.

Senior Economist at the University of the South Pacific, Dr Mahendra Reddy, warned that Fiji’s economic growth rates remain too low to meaningfully transform the economy.

He argued that growth concentrated in tourism, construction and consumption had not delivered sufficient productivity gains and questioned whether government spending was generating adequate economic returns.

“We need real growth of three to five percent because when GDP is growing, but not transforming, that becomes the issue,” he said.

Dr Reddy also criticised weaknesses in implementation and planning, saying Fiji’s long-term development plans lacked measurable targets and costing frameworks.

Chairperson of the Fiscal Review Committee, Richard Naidu, echoed concerns around growth, saying Fiji could not afford complacency as global competition intensifies.

He stressed that stronger growth was necessary not only to increase government revenue but also to improve incomes and living standards.

“Growing the economy is not about growing the economy for the rich. It is about increasing everybody’s incomes,” he said.

Naidu warned that Fiji remains vulnerable to future economic shocks, including natural disasters and global crises, while facing major infrastructure deficits in water, sanitation and public services.

Panelists repeatedly stressed that economic resilience would require a whole-of-nation approach involving government, businesses and communities, with stronger focus placed on productivity, implementation capacity and creating opportunities for women, youth and small businesses.

The discussion comes as government continues preparations for the upcoming national budget amid mounting fiscal pressures.