State of economy on the brink, experts warn

Key economic stakeholders warn Fiji’s economy is under pressure from rising debt, weak growth, declining fiscal buffers and persistent cost-of-living pressures just weeks before the 2026-2027 National Budget.

Fiji’s economy is “vulnerable”, “critical” and “precarious” — words used by speakers at a national economic dialogue yesterday as the country carries $11.4 billion in debt, faces projected growth of just 1.5 per cent this year and inflation expected to exceed six per cent.

The warnings were made at the State of the Fijian Economy Dialogue 2026, organised by Dialogue Fiji at the Grand Pacific Hotel in Suva.

Representatives from Government, the International Monetary Fund (IMF), the World Bank, the private sector and civil society painted a concerning picture of the economy.

Key concerns raised included:

• Government borrowing is increasing while investment is declining;

• The operating surplus has fallen by 95 per cent; and

• Rising living costs continue to place pressure on ordinary Fijians.

Questions seeking Prime Minister Sitiveni Rabuka’s response to the concerns remained unanswered when this edition went to press last night.

The dialogue comes as the Government prepares to deliver the 2026-2027 National Budget on June 27.

The event continues today with a panel discussion on national priorities and Fiji’s economic future.

Participants include Deputy Prime Minister and National Federation Party leader Professor Biman Prasad, former Finance Minister Aiyaz Sayed-Khaiyum, former Prime Minister Mahendra Chaudhry, People’s Alliance deputy leader Manoa Kamikamica, Unity Fiji leader Savenaca Narube, SODELPA leader Aseri Radrodro and Opposition MP Jone Usamate.