The Fiji Reserve Bank says the economy grew by 0.6 percent last year.
It put this down to growth in manufacturing, hotels and restaurants, mining, financial services and real estate.
The Bank's predicting growth this year to reach 2.7 percent, with tourism and mining maintaining their momentum from last year.
And it says the sugar sector is forecast to increase production this year given the reforms currently underway in the industry.
The Reserve Bank says inflation in April hit 8.1 percent and given the higher costs of oil and food it's lifted its full year forecast to 7.6 percent from six.