The U.S. Department of State’s Investment Climate Statements provide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses. The Investment Climate Statements are also references for working with partner governments to create enabling business environments that are not only economically sound, but address issues of labor, human rights, responsible business conduct, and steps taken to combat corruption. The reports cover topics including Openness to Investment, Legal and Regulatory Systems, Protection of Real and Intellectual Property Rights, Financial Sector, State-Owned Enterprises, Responsible Business Conduct, and Corruption.
Executive Summary
Since April 2021, Fiji experienced a second wave of the COVID-19 outbreak, and at one point during the crisis, suffered among the highest infection rates in the world. The COVID-19 pandemic and a series of natural disasters had a devastating impact on the tourism-dependent economy. The government also lost over $1.51 billion in tax revenues. The gradual easing of COVID-19 restrictions, increased remittances from overseas workers, and the distribution of government-funded unemployment benefits have slightly boosted some consumption and investment activity, with GDP growth estimated at -4.1 percent in 2021, compared to -15.2 percent in 2020.
The reopening of borders for tourism in December 2021 resulted in a 12-fold increase in visitor arrivals in the 12 months to February 2022, compared to the same period ending February 2021. The resumption of tourism and improved performance in the primary and industrial sectors, major exports, and the service-related sectors is expected to drive growth by 11.3 percent in 2022 and 8.5 percent in 2023.
Fiji has traditionally been the economic, transportation, and academic hub of the South Pacific islands. The government welcomes foreign investment and parliament passed the Investment Act 2021 to improve the ease of doing business in Fiji. The government’s investment and trade promotion agency, Investment Fiji, registered 12 investment projects valued at $7.64 million (FJD $16.2 million) from American investors in 2021. Exports to Fiji totaled over $180 million in 2021. The United States is Fiji’s top export market. In 2021, U.S. consumers bought over $230 million in Fijian goods and services last year.
Fiji has trade and investment potential, and offers incentives to encourage investments in agriculture, residential housing development, energy, audio & visual, retirement village/aged care facilities, health sector, tourism, manufacturing, and the information communication technology (ICT)/business process outsourcing (BPO) sector.
To access the ICS, visit the U.S. Department of State Investment Climate Statements website.