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Map of FijiFiji consists of 322 islands, of which 110 are inhabited, and 522 smaller islets. The two most important islands are Viti Levu and Vanua Levu. Viti Levu hosts the capital city of Suva, and is home to nearly three quarters of the population. The islands are mountainous, with peaks up to 1,300 metres (4,250 ft), and covered with tropical forests. Other important towns include Nadi (the location of the international airport), and Lautoka. The main towns on Vanua Levu are Labasa and Savusavu. Other islands and island groups include Taveuni and Kadavu (the third and fourth largest islands respectively), the Mamanuca Group (just outside Nadi) and Yasawa Group, which are popular tourist destinations, the Lomaiviti Group, outside of Suva, and the remote Lau Group. Rotuma, some 500 kilometres (310 mi) north of the archipelago, has a special administrative status in Fiji.















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Urbanization and expansion in the service sector have contributed to recent GDP growth. Sugar exports and a rapidly growing tourist industry—with 430,800 tourists in 2003 and increasing in the subsequent years —are the major sources of foreign exchange. Sugar processing makes up one-third of industrial activity. Long-term problems include low investment and uncertain property rights. The political turmoil in Fiji has had a severe impact on the economy, which shrank by 2.8% in 2000 and grew by only 1% in 2001. The tourism sector recovered quickly, however, with visitor arrivals reaching pre-coup levels again during 2002, which has since resulted in a modest economic recovery. This recovery continued into 2004 but grew by 1.7% in 2005 and is projected to grow by 2.0% in 2006. Although inflation is low, the policy indicator rate of the Reserve Bank of Fiji was raised by 1% to 3.25% in February 2006 due to fears of excessive consumption financed by debt. Lower interest rates have so far not produced greater investment for exports. However, there has been a housing boom from declining commercial mortgage rates.

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