Westpac says the Fijian economy is projected to grow by 3.0 percent in 2024, an upward revision from the previous estimate of 2.5 percent, driven by unexpectedly strong key indicators.

In its quarterly economic update released today, Westpac said despite the headwinds of rising prices and sluggish partner countries growth, “Fiji’s economy has been buoyed by a robust tourism sector, increased industrial activity, and a rebound in consumption, even amid labour challenges.”

Westpac said this performance was setting the stage for the economy to return to its historical growth trend in the medium term.

“Tourism industry is growing at a healthy rate despite subdued growth in its traditional source markets, with visitor arrivals already up by 6.9 percent during the first three quarters of 2024,” the Westpac update report said.

“We expect this year to end with visitor arrivals totalling at 990,000, just shy of the million mark.

“The 13-hour non-stop flight between Fiji and Dallas scheduled to go ahead from

December has created a completely new set of opportunities for the tourism sector, expected to bring around 1,000 additional passengers per week.

“Fiji Airways is already looking at new routes for further growth prospects.”

Westpac said soaring prices have been challenging for consumers for most of this year as 12-month annual average inflation reached 5.3 percent in August, with most of the price push coming from food and non-alcoholic categories.

“As headline inflation among advanced economies recede, we expect domestic inflation to fall in line, however, prices will stay elevated compared to historical standards.”

Westpac also said Government registered a much lower net deficit of 3.4 percent in FY2023-24, led by underspending while debt to GDP stood at 78.3 percent in July 2024.

“Last fiscal year, Government performed exceptionally well in revenue collection, coming in just shy of its original target while savings were made on expenditures through controlled approach and oversight.

“Fiscal stimulus announced in last budget has a focus on consumption growth, while the private sector is being encouraged to drive growth in investments.”