Economy

Fiji on track for 4% economic growth in 2015

The Reserve Bank of Fiji is optimistic for the 4.0 percent economic growth projected for 2015, while inflation is tipped to increase partially driven by higher taxes announced in the 2016 National Budget. In a recently released Economic Review for December 2015, the Reserve Bank says: Recent data for the Fijian economy indicate that overall economic activity […]

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January 4, 2016 9:52 am

The Reserve Bank of Fiji is optimistic for the 4.0 percent economic growth projected for 2015, while inflation is tipped to increase partially driven by higher taxes announced in the 2016 National Budget.

In a recently released Economic Review for December 2015, the Reserve Bank says:

Recent data for the Fijian economy indicate that overall economic activity remains relatively strong supported by robust domestic demand and the economy is on track to achieve the 4.0 percent growth projected for 2015.

In line with increased economic activity, developments in the labour market continue to be favourable. The latest Reserve Bank’s Job Advertisements Survey showed that the number of vacancies advertised in the year to November increased by an annual 18.4 percent. This reflected higher recruitment intentions in the agriculture, forestry & fishing; construction; mining & quarrying; wholesale & retail trade & restaurants & hotels; transport, storage & communication and the finance, insurance, real estates & business services.

Inflation rose to 1.8 percent in November from 1.4 percent in October, driven by the food & nonalcoholic beverages and miscellaneous goods & services categories. Similarly, higher prices in the alcoholic beverages, tobacco & narcotics category owing to the partial impact of higher taxes on alcohol and tobacco as announced in the 2016 National Budget, underpinned the inflation outcome.

As at 30 November, foreign reserves (RBF holdings) were $1,948.6 million, sufficient to cover 5.9 months of retained imports of goods and nonfactor services. Currently (31 December), foreign reserves are $1,946.8 million, sufficient to cover 5.9 months of retained imports of goods and non-factor services.

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