World Bank2025-10-012025-10-012025-09-29https://hdl.handle.net/10986/43792Fiji has weathered a long history of economic shocks and, with a decade of political stability behind it, has ambitions to become a high-income country. Past policies have supported its transition to an upper middle-income country, driven by capital deepening, population growth and improvements to human capital, and increased total factor productivity (TFP) in recent years. Services, and particularly tourism, have become the engine of the economy, with services accounting for roughly 80 percent of total output growth in the past 30 years. But Fiji now faces demographic headwinds with the potential of an aging population and a declining share of working-age adults, combined with a changing climate that could have a long-term impact on investment and labor productivity. Sticking to business-as-usual will not deliver the growth it needs; achieving its ambition will mean ambitious reforms targeting TFP growth and human capital development through increased investment, health and education policies, and greater labor force participation, especially among women.en-USCC BY-NC 3.0 IGOECONOMIC GROWTHECONOMIC DEVELOPMENTPRIVATE SECTOR DEVELOPMENTSTATE OWNERSHIPPUBLIC HEALTHDECENT WORKReportWorld Bank