Fiji

Key trends and development challenges

Fiji is a small island developing state located in the Pacific sub-region of Melanesia. With a GDP of $5.97 billion, Fiji is the second-largest economy in the Pacific and accounts for 13.7% of regional GDP. Fiji has a population of 926,544, resulting in a GDP per capita of $6,441 — the sixth-highest in the Pacific. The country’s exclusive economic zone (EEZ) spans more than 1.29 million square kilometres, the 27th-largest globally, and is comparable in size to the EEZ of Argentina.

Fiji historically had one of the lowest official development assistance (ODA) to GDP ratios in the Pacific, with aid accounting for only 2.5% of national income between 2008 and 2020. However, in the wake of the pandemic, this share spiked to 15%. The jump was a product of increased development support during the pandemic, a contraction in Fijian incomes, and a political shift in the country that resulted in more inflows of aid. In a global context, Fiji is only moderately aid reliant, ranking 48th among 125 developing countries. At 0.731, Fiji’s Human Development Index score ranks 111th out of 193 ranked countries.

Fiji’s post-Covid economic recovery has been strong, with growth returning to pre-pandemic trends. GDP grew 7.5% in 2023 and 4.0% in 2024 on the back of tourism recovery and household consumption, though growth for 2025 was revised down to 3.2%, which the government attributes to US tariff uncertainty and Middle East instability affecting supply chains. The risk of major climatic shocks poses a persistent threat to the country’s development trajectory and economic stability. As such, the Fijian government’s development agenda places a strong emphasis on climate-adapted infrastructure and disaster preparedness measures.

Between 2008 and 2024, annual official development finance (ODF) disbursements to Fiji — including grants, loans, and other forms of assistance — averaged $311 million. As a share of Fiji’s total received development support, loan-financed projects have increased significantly. In 2008, loans accounted for just 5% of total incoming ODF, while in 2021 and 2022 they made up 51% and 79% respectively, before falling to 16% in 2023. Despite the increase in lending, the International Monetary Fund continues to rank Fiji’s risk of debt distress as moderate, in part a result of the high concessionality of the loans received by the country.

Development partners and sector trends

Between 2008 and 2024, three-quarters of the ODF support to Fiji came from its largest five development partners, led by Australia (24%), the Asian Development Bank (18%), the World Bank (13%), China (10%), and Japan (10%). Fiji has one of the lowest levels of donor concentration in the Pacific, with its ODF coming from a variety of bilateral and multilateral sources. ODF in Fiji was largely in line with regional trends in terms of sector distribution. Fiji’s only sectoral outliers relate to its below-average share of spending on the energy sector and higher spending on industry, mining, and construction.

Since 2008, Fiji has received $675 million in development financing with a “principal” focus on either climate adaptation or mitigation. Over this same period, the country has seen $1.5 billion in development financing with a “significant” focus on climate outcomes. Since the early 2010s, Fiji has seen steady growth in climate-targeting projects, a trend mirrored across most of the Pacific. As a share of total ODF received by Fiji, “principal” climate projects made up 13% of total spending, above the regional average of 8%. Spending on “significant” climate projects in Fiji made up 28% of incoming funds, well above the regional average of 17%. To date, the largest climate ODF investment in Fiji has been the Fiji Urban Water Supply and Wastewater Management Project financed by the Green Climate Fund, worth close to $20 million.

Between 2008 and 2024, Fiji received $391 million in development financing with a “principal” focus on gender equality, and $1.6 billion in development financing with a “significant” focus on gender equality. “Principal” gender equality financing constituted 7% of ODF received by the country, well above the regional average of 2%. Over the same period, “significant” marked gender financing made up 30% of incoming ODF, also well above the regional average of 23%. The largest project directly targeting gender equality in Fiji was the multi-year $44 million Pacific Women Shaping Pacific Development program, funded by Australia.