Economy

2016 economic growth now projected at 2.4%

Fiji’s economy is expected to grow by 2.4% in 2016, revised downwards from the 3.5% forecasted a year earlier. In a statement released today, the Chairman of the Macroeconomic Committee of the Reserve Bank of Fiji, Mr Barry Whiteside stated the downward projection is due to the impact of Tropical Cyclone Winston and the floods […]

Calvin Prasad

May 24, 2016 3:50 pm

Fiji’s economy is expected to grow by 2.4% in 2016, revised downwards from the 3.5% forecasted a year earlier.

Reserve Bank Governor, Mr. Barry Whiteside. (FILE)
Reserve Bank Governor, Mr Barry Whiteside. (FILE)

In a statement released today, the Chairman of the Macroeconomic Committee of the Reserve Bank of Fiji, Mr Barry Whiteside stated the downward projection is due to the impact of Tropical Cyclone Winston and the floods in April.

WHITESIDE: “The downward revision to this year’s growth largely resulted from the recent natural disasters which caused huge damage to infrastructure, loss of output especially in the agriculture sector and reduced production time of businesses. “

Governor Whiteside added that the revised growth for this year took into account an expected pickup in construction activity led by post-cyclone reconstruction and rehabilitation work.

WHITESIDE: “In addition, an uptick in wholesale & retail activity is also envisaged as households replenish domestic items and increase purchases of reconstruction materials, facilitated by the assistance provided through the Fiji National Provident Fund (FNPF), Social Welfare benefits and the Hope for Homes initiatives following Cyclone Winston and the floods”.

The Macroeconomic Committee is made up of senior representatives from the Ministry of Finance; Strategic Planning, National Development & Statistics Office; Fiji Bureau of Statistics; Ministry of Industry & Trade and Tourism; Prime Minister’s Office; Investment Fiji; Fiji Revenue & Customs Authority and the Reserve Bank of Fiji.

However, Governor Whiteside said the Fijian economy was expected to grow by 3.6% in 2017, higher than the 2.1% earlier anticipated.

WHITESIDE: Growth next year is forecast to be broad based, with the major contributors being the  manufacturing; transport & storage; financial & insurance activities; wholesale & retail trade and the construction sectors.”

In 2018, the economy is expected to grow further by 3.2 percent.

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