RBF: Growth not immediate

Reserve Bank of Fiji Governor Ariff Ali says the Government’s multi-million-dollar infrastructure programme will support long-term economic growth, but the full benefits will take time to be realised.

He made the comments following the Government’s allocation of significant funding for key public sector investment programmes in the 2026–2027 National Budget.

The Ministry of Public Works received $820.8 million, including $369.8 million for the Fiji Roads Authority and $290.6 million for the Water Authority of Fiji.

The Ministry of Rural and Maritime Development was allocated $35.4 million for community and outer-island projects, while almost $2 billion was set aside for the social sector covering education, free healthcare and welfare assistance for more than 130,000 Fijians.

Mr Ali said the capital investment programme was aimed at supporting long-term growth through improved infrastructure.

He said investments in roads, bridges, waterways, ports and energy projects, including port redevelopment and the national energy programme, would improve connectivity, productivity and energy security.

"Over time, these investments can help reduce business costs, facilitate trade and strengthen economic competitiveness," he said.

Mr Ali said infrastructure spending would also support short-term job creation, particularly in the construction sector.

However, he said broader economic gains would take longer to flow through the economy.

He said renewable energy investment could reduce reliance on imported fuel, while transport upgrades would support tourism, regional development and market access.

“However, the impact on growth is likely to be gradual rather than immediate, as large-scale infrastructure projects typically require extended implementation periods before their benefits are fully realised,” he said.

Mr Ali added that gains could be tempered by tighter operational spending and subdued private sector demand.