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Our Economy On Track For Growth

Our Economy On Track For Growth
July 05
11:08 2017

The Fijian economy is on track to achieve a higher growth of 3.8 per cent this year after an estimated growth of 2.0 per cent last year.

This is according to the latest Reserve Bank of Fiji Economic Review.

Higher visitor arrivals were also recorded from New Zealand and the United States of America which underpinned the 7.7 per cent annual growth in total tourists in the year to May.

The Review noted the beginning of the cane crushing season which started on 1 June.

There are expectations for higher cane and sugar production this year as the industry recovers from the impact of Tropical Cyclone Winston last year.

On the downside, annual contractions were noted for mahogany production, pine log and woodchip production.

Gold production picked up in May, but this was not enough to offset the decline noted in the earlier months of the year.

Total gold production declined 23.3 per cent year-on-year, in the first five months of 2017.

The Review noted that private consumption and investment activities continue to hold up aggregate demand. Consumption activity has been supported by higher incomes, improvement in labour market conditions and inward remittances. Pay as you earn tax collections which is a partial indicator for income, increased by an annual 13.9 percent cumulative to April.

Personal remittances noted a growth of 3.7 percent (to $123.6m) in the first quarter.

Value Added Tax (VAT) collections recorded 17.2 per cent growth.

New vehicle registrations also grew by 13.9 per cent on an annual basis, cumulative to April and May.

It was noted that labour market conditions remained favourable with higher recruitment intentions in the wholesale, retail trade, restaurants, hotels, community, social, personal services; agriculture, electricity and water sectors.

SOURCE: RESERVE BANK OF FIJI

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