Republic of Fiji: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Fiji

International Monetary Fund

No 2026/118, IMF Staff Country Reports from International Monetary Fund

Abstract: The economy is now challenged by higher fuel prices and weakening external demand. The fiscal stance was substantially eased before the oil shocks. Monetary and financial conditions remain highly accommodative. Nonetheless, growth will likely fall and inflation increase by year’s end. Even assuming a steady reduction in fiscal deficits, public debt would remain high for an extended period, while higher fuel costs would exacerbate pressure on foreign reserves. Risks are tilted to the downside, from more severe increases in oil prices, higher fiscal financing costs and crowding out of much-needed public capital investment, long-standing vulnerabilities to structural and supply-side constraints, and natural disasters.

Pages: 70
Date: 2026-06-05
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