Fiji’s economy is dependent on the sugar industry and tourism. Two political coups in 1987 adversely affected tourism and caused a loss of skilled and educated workers when many Indians left the nation. There was a general recovery by the early 1990s, but in 1993 Cyclone Kina caused an around $84 million in damage to agriculture and infrastructure. In 1999 Fiji’s labor force stood at 319,599; most people were employed in salaried or wage positions. Agriculture, forestry, and fishing employ 2 % of Fiji’s workers and in 1999 contributed 18 % of the gross domestic product (GDP). Sugarcane is the principal cash crop, while paddy rice is the chief subsistence crop. Vegetables, fruit, beef, pork, poultry, and dairy products are produced for the local market.

Tourism is almost as large an earner of foreign exchange as sugar. Fiji is strategically located for air travelers from Australia, New Zealand, the United States, and Japan and is a major destination for tourist cruises. Tourism is based on the attractions of duty-free shopping and colourful handicraft markets as well as the usual attractions of tropical islands. Many hotels are located on small offshore islands or secluded beaches and offer accommodations in houses of local design and materials rather than in urban-style multistory buildings.

Fiji, endowed with forest, mineral, and fish resources, is one of the most developed of the Pacific island economies, though still with a large subsistence sector. Sugar exports and a growing tourist industry are the major sources of foreign exchange. Sugar processing makes up one-third of industrial activity. Roughly 300,000 tourists visit each year, including thousands of Americans following the start of regularly scheduled non-stop air service from Los Angeles. Fiji's growth slowed in 1997 because the sugar industry suffered from low world prices and rent disputes between farmers and landowners. Drought in 1998 further damaged the sugar industry, but its recovery in 1999 contributed to robust GDP growth. Long-term problems include low investment and uncertain property rights. The government's ability to manage the budget and fulfill predictions of 4% growth for 2001 will depend on a return to stability, a regaining of investor confidence, and the absence of international sanctions.