Economical overview
Fiji is the largest, most developed and least
dependent economy in the South Pacific, but in a global
perspective, the country is small and vulnerable. Fiji
is considered by the World Bank as a middle-income
country, but many residents are poor. The sugar and
clothing industry has long been the engines of the
economy, but both have declined since the 2000s.
Nowadays, the service industry is by far the most
important part of the economy.
In the service sector, almost three quarters of
Fiji's wage earners are found, accounting for an almost
equal share of the country's gross domestic product
(GDP). Although political unrest has at times frightened
many visitors, tourism is still one of the most
important sources of income.
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Countryaah.com:
Major imports by Fiji, covering a full list of top products imported by the country and trade value for each product category.
Sugar is still the most important commercial crop and
one of the most important export goods. But sugar sales
have fallen sharply, from 40 percent of export revenues
in 1994 to 14 percent in 2015. The industry is
considered outdated and poorly managed. In addition, the
EU has phased out previous subsidies.
The textile industry's share of exports has also
fallen sharply, especially as a result of the favorable
conditions for entry to the US market were withdrawn in
2005. By the mid-2010s, bottled mineral water had passed
on both sugar and clothing as the most profitable export
product.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including FJI which represents the country of Fiji.
Growth was good in the early years of the 2000s, but
the sanctions of the world after the 2006 coup hit the
economy hard. In 2009, the economy shrank as political
developments and the international economic crisis put
severe pressure on Fiji's finances that year. Tourism
declined, as did Fiji overseas money shipments, and
exports weakened. The unstable situation caused donors
and foreign investors to pull their ears. A large
current account deficit, which includes service trade
and money transfers, threatened to cause a payment
crisis.
A few days after the constitution was repealed in
April 2009, security forces occupied the central bank,
whose chief executive was deposed. The successor
immediately allowed the currency to devalue by 20
percent. This led to a sharp increase in inflation, with
a peak of 10.5 percent in April 2010. Subsequently, the
rate of price increase has been steadily pushed down and
averaged around 3 percent during the first half of
2010.
During the first half of 2010, Fiji's economy grew
steadily, despite several setbacks in the form of storms
and floods. The main reasons for the good growth were
infrastructure investments, poverty reduction, increased
domestic consumption and growing foreign investment.
Multiple tax cuts and rising amounts sent from Fijians
abroad to their home country also contributed.
However, the most important thing to attract foreign
investors was that the country gradually stabilized
politically. The adoption of a new, democratic
constitution in 2013 and the fact that free elections
were carried out in 2014 are considered by most analysts
to be decisive for economic development.
However, when the cyclone Winston hit the islands in
February 2016, the financial losses became so large
(equivalent to about a third of GDP) that Fiji was
forced to take out a loan from the World Bank for the
first time in 23 years. The money (US $ 50 million) was
used to rebuild transportation systems and other
infrastructure on the islands. Good revenues from
growing tourism could offset a significant part of the
economic losses and GDP growth was finally positive in
2016 as well.
Fiji's foreign debt is relatively modest, although it
increased in the early 2010s. Official unemployment was
around 8–9 percent during the first half of the 2010s. A
significant proportion of the labor force is found in
the informal sector, where wages are low and conditions
are uncertain. The proportion of underemployed persons
is also expected to be high.
Fiji is drawn with a considerable current account
deficit, ie imports are significantly larger than
exports. The current account balance, which includes
trade in services and money transfers, is also negative.
FACTS - FINANCE
GDP per person
US $ 6,202 (2018)
Total GDP
US $ 5,480 million (2018)
GDP growth
5.0 percent (2018)
Agriculture's share of GDP
10.4 percent (2018)
Manufacturing industry's share of GDP
10.8 percent (2018)
The service sector's share of GDP
54.0 percent (2018)
Inflation
3.5 percent (2019)
Government debt's share of GDP
46.2 percent (2018)
External debt
US $ 899 million (2017)
Currency
Fijian dollar
Merchandise exports
US $ 1,012 million (2018)
Imports
US $ 2,362 million (2018)
Current account
- US $ 486 million (2018)
Commodity trade's share of GDP
68 percent (2018)
Main export goods
mineral water, sugar, clothing, fish, gold, timber
(2015)
Largest trading partner
USA, Australia, UK, Singapore, China, New Zealand
(2015)
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