Potential Output and High-Income Convergence in Fiji

Patterns, Drivers and Policy Implications

This paper examines Fiji’s potential output growth using a production-function approach and analyzes income convergence toward high-income status.
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Volume/Issue: Volume 2026 Issue 053
Publication date: June 2026
ISBN: 9798229052436
$15.00
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Topics covered in this book

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Investments and Securities-General , Labor , Economics- Macroeconomics , Environmental Economics , Potential output , income convergence , growth accounting , capital accumulation , total factor productivity , climate resilience , natural disasters , Fiji , IMF staff , issues paper , IMF country , convergence in Fiji , production-function approach , Human capital , Productivity , Income

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Summary

This paper examines Fiji’s potential output growth using a production-function approach and analyzes income convergence toward high-income status. Potential growth is estimated at around 3.4 percent over the medium term, with capital accumulation and productivity as the main drivers. The analysis indicates that convergence to high-income status by 2050 is feasible under conditions of sustained and productive investment, particularly targeted at enhancing resilience to climate-related shocks.

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