FIJI, Oct. 28 -- Fiji has made important economic progress since the pandemic, but its room to respond to future shocks is narrowing. Sustaining stronger growth will require higher productivity, stronger investment, enhanced fiscal discipline, and a broader economy according to the World Bank Group's first Fiji Economic Update released today in Suva.

Launched in partnership with the University of the South Pacific, the report - titled "Creating Fiscal Space to Accelerate Growth" - projects the economy will grow by 2.1 percent in 2026 before recovering to 3.0 percent by 2028.

Higher fuel and shipping costs are squeezing household budgets, while recent policy measures and the new external shock have begun to reverse Fiji's earlier fiscal ...