The economy is estimated to have declined by 3.9 per cent in 2007. However, the economy is expected to expand by 2.2% in 2008. Growth for 2008 is forecasted to be broad based across most sectors, except for community, social and personal services and finance, insurance, real estate and business services.  

 
Trade

Provisional data on Fiji’s total merchandise exports for 2007 was $2,890.1 million, domestic exports was $828.8 million and total exports was $1,209.8 million. When compared to 2006, imports decreased by $234.3 million (7.5%); domestic exports decreased by $5.4 million (0.7%), whilst re-exports increased by $13.7 million (3.7). Leading the increase in export receipts were mineral water, timber, sweet biscuits, flour, uncooked pasta, fruits and vegetables and fish while the decline im import payments was a result of lower outlays for investment, intermediate and consumption goods. (Adapted from Fiji Islands Bureau of Statistics).

The Fiji economy has achieved a reasonable degree of diversification that enables it to withstand reasonable shocks such as that experienced in 2000. Destined for dizzying heights, tourism also crashed after the 2000 coup. The introduction of a new concession by Government in 2002 exempting tax on hotel developer's profit plus the range of incentives designed to increase investment in tourism has again revived this priority sector.

Manufacturing, which is export oriented has been encouraged by the government with various taxation concessions. Apart from export orientated industries such as garments and footwear, manufacturing also includes concrete, cement and other building materials for domestic and regional use, furniture, foods including alcoholic drinks, processed timber for export and household products to name some of the main items.

The economy is largely based on private enterprise, with government ownership of service utilities, the national airline Air Pacific, and the Fiji Sugar Corporation Limited which mills all the country's sugar.

The government has significantly deregulated the economy, has restrained government expenditure and is reforming the taxation system. The emphasis by government is to put the country's resources to efficient domestic production and export oriented production rather than inefficient production for local markets. As a result, many import and fiscal duties have been reduced.