Fiji’s path to faster growth lies in its farms, says ANZ economist

Fiji can achieve stronger economic growth, and investing more in its agriculture sector holds the key.

ANZ Pacific economist Dr Kishti Sen said Fiji can bring more Fijians into the growing middle class and boost spending by growing farm income, which has the potential to lift Fiji’s economic growth significantly.

"The bulk of consumption expenditure of the country comes from the rural economy," he told reporters during a briefing at the ANZ headquarters in Suva yesterday.

"If we can grow the rural economy, put more money into the farmers' pockets, then surely Fiji's economy can grow by more than two to three per cent and can actually aim for five to six per cent because consumers really drive Fiji's economy."

With visitor arrivals and remittances stabilising, Fiji should look to its farmers and the unrealised potential in key agricultural commodities, Dr Sen added.

"Fiji's not really producing those commodities that are fetching really high prices in the global market today, like coffee and cocoa," he said, adding that diversifying into commodities with high global demand, expanding agriculture export volumes and investing in the infrastrucuture to support large-scale production and export would increase incomes in the rural economy, lift spending power, and support businesses.

ANZ Bank Fiji country head Rabih Yazbek said tapping into the rural economy was crucial for driving growth while the country reduces its dependence on tourism.

"It's focusing on higher value crops that can be exported first of all, so your ginger, turmeric, kava, and then separately, focusing on lower value crops that can substitute what we import today for the tourism sector," Mr Yazbek explained.

"So the story is not having to wait for the tourism industry to expand capacity, and instead focusing our efforts in the meantime on developing the rural sector."

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