The islands of Fiji are the most developed of the Pacific island economies. The economy of Fiji is driven primarily by tourism, followed by sugar and garment export. Most tourists travel from neighboring Australia, with others coming from New Zealand, the United States, the United Kingdom, and Japan. The revenue generated from tourism exceeds the two largest goods exports. Recently, the revenue generated from sugar and garment export have waned. Quality concerns, poor administration, and the phasing out of a preferential price agreement with the European Union in 2007 have greatly impacted Fiji's sugar industry and may ultimately be its downfall. The garment industry struggles with the lower labor costs of Chinese competitors and the softening of a trade preference agreement with Australia, thereby causing closures of major garment factories within Fiji.
Though sugar and garments are the major exports of Fiji, there are other exports that play a role in supporting the Fiji economy such as coconuts, ginger, fish, gold and silver. Forestry is also an important export as Fiji has an extensive timber reserve. Since the turn of the century, the export of still mineral water, primarily to the United States, has rapidly increased, generating more than $40 million per year.
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Fiji flag via ShutterStock.com |
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