Potential Output and High-Income Convergence in Fiji

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.