World Bank Forecasts Fiji Growth of 2.1% in 2026 and Warns on Public Debt

The World Bank's first Fiji Economic Update projects economic growth of 2.1% in 2026, followed by a recovery to 3.0% in 2028, while warning that the Pacific island economy has less fiscal capacity to absorb another major external shock.

The report, titled *Creating Fiscal Space to Accelerate Growth*, says Fiji's public debt declined from about 95% of gross domestic product in 2021 to 76.9% in 2025, but is expected to increase again. Higher fuel and shipping costs are putting pressure on household budgets and businesses in an economy that relies heavily on imports.

The assessment recommends improving the targeting of assistance to vulnerable households rather than relying principally on broad subsidies. It also calls for stronger public-spending discipline while protecting investments in infrastructure, skills and employment.

The World Bank identifies renewable energy, agriculture and fisheries value chains, more diversified exports and private investment as potential sources of stronger growth. Addressing shortages of skilled workers and expanding women's participation in the workforce are additional priorities.

Fiji's Vision 2050 objective of reaching high-income status would require annual growth of roughly 4% to 6%, compared with a historical pace of about 2% to 3%, the report says. These are development targets and projections, not guaranteed outcomes.

The update was presented in Suva in partnership with the University of the South Pacific. The World Bank's online release carries an October 28 publication date but an October 26 dateline; the precise launch time is therefore not established by the available material.