Business

Uncertainty lowers global growth projection, domestic outlook remain intact

The International Monetary Fund has further downgraded its global growth projection for 2016 to 3.4 percent, largely due to heightened uncertainty and turbulence in emerging market economies. Reserve Bank of Fiji (RBF) Governor Mr Barry Whiteside said that lower growth prospects in the United States and other advanced economies also contributed to this. The elevated […]

Verleshwar Singh

January 29, 2016 9:04 am

The International Monetary Fund has further downgraded its global growth projection for 2016 to 3.4 percent, largely due to heightened uncertainty and turbulence in emerging market economies.

Reserve Bank of Fiji (RBF) Governor Mr Barry Whiteside said that lower growth prospects in the United States and other advanced economies also contributed to this.

The elevated downside risks to the global outlook are expected to create negative spill overs for Fiji’s trading partners thereby impacting our tradable
sector.

However, further declines in commodity prices provide an upside risk for commodity importing countries including Fiji.

Mr Whiteside said that despite the increasing uncertainties on the international front, domestic growth prospects remained firm and the outlook for the Bank’s monetary policy objectives was intact.

Inflation fell to 1.6 percent in December and is forecast to remain low this year. Foreign reserves remain comfortable, currently (28 January) at around $1,998.3 million, sufficient to cover 5.6 months of retained imports of goods and non-factor services

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