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Trade Deficit Subsided for April 2018

Trade Deficit Subsided for April 2018
Shoran Devi
July 21
11:00 2018

International trade is the ex­change of goods, services and capital between countries.

It measures the change in the stock of material resources in Fiji resulting from the movement of merchandise into or out of the country.

Also called “net exports”, it re­flects the seasonally adjusted im­ports and exports data and are considered as one of the most im­portant economic statistics.

Imports are foreign goods bought by a country whereas exports are the goods produced in one country and sold to another country.

When a country’s imports exceed its exports, the country is said to have a trade deficit, while a trade surplus occurs when the value of a country’s exports exceed that of its imports.

Information on imports and ex­ports are input to calculating this data and are used particularly in the calculation of Balance of Pay­ments and Gross Domestic Product for the country.

Latest provisional data released by the Fiji Bureau of Statistics put the total value of goods imported in April 2018 at $401.4 million while the value of total exports was $131.9 million.

Compared to April 2017, total im­ports increased by $34.3 million (9.3 per cent) whereas total exports decreased by $26.4 million (16.7 per cent).

The April 2018 trade deficit amounted to $269.5 million com­pared to $279.4 million a month ear­lier (March).

Imports

Compared to April 2017, the im­port categories recording notable increases were:

However, the import categories re­cording notable decreases were:

For the month of April 2018, Fiji’s major sources of imports were:

Domestic Exports

Compared to April 2017, there were no notable increases for do­mestic export category.

However, notable decrease was noted in prepared foodstuffs, bever­ages, spirits & tobacco export cat­egory.

It was down $24.6 million (47 per cent) to $27.8 million due to de­creased domestic exports of sugar and molasses.

For the month of April 2018, Fiji’s major domestic export destinations were:

Re-Exports

Compared to April 2017, there were no notable movements record­ed for re-export categories.

The need for international trade stems from the fact that countries have different capabilities and they specialise in producing different goods and services.

To compensate for what they can­not produce, they engage in trade with other countries.

It allows domestic markets to ex­tend a country’s output beyond na­tional frontiers.

The rise in the international trade is essential for the growth of glo­balisation.

It also brings about closer ties be­tween nations.

Fiji’s major re-export destinations were:

For our country, positive impacts of increasing trade flows are emi­nent through our strong foreign reserve levels.

If foreign reserve levels decline, that means we are paying more to the rest of the world than inflows and vice versa.

In this regard, it is interesting to note that Fiji’s foreign reserves are currently holding steady at approx­imately $ 2,166.8 million.

 

Base metals & articles thereof – down $15.1 million (41.6 per cent) to $21.2 million

This is due to decreased imports of other tubes and pipes and bridges and bridge sections; and

Machinery & mechanical & electrical appliances & parts  thereof – down $5.7 million (8.6 per cent) to $61.0 million.

This is due to decreased imports of aerials and aerial reflectors of all kinds; parts suitable for use there there with.

Shoran Devi

This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Financial Markets Analyst at the HFC Bank, Shoran Devi.

United States of America – down $17.0 million (47.0 per cent) to $19.1 million due to decreased exports of mineral water and sugar;

Australia – down $7.4 million (32.1 per cent) to $15.6 million due to decreased exports of gold;

New Zealand – up $0.6 million (15.5 per cent) to $4.5 million due to increased exports of kava and corned meat;

Vanuatu – down $2.4 million (39.5 per cent) to $3.7 million due to de­creased exports of flour and bricks, blocks and tiles; and

Papua New Guinea – up $1.6 mil­lion (180.3 per cent) to $2.5 million due to increased exports of sweet biscuits and winding wire.

Australia – up $33.5 million (65.6 per cent) to $84.7 million due to in­creased imports of wheat and mes­lin and liquefied butanes;

Singapore – up $0.3 million (0.4 per cent) to $82.5 million due to increased imports of light oils and preparations (motor spirits);

New Zealand – up $12.7 million (23.8 per cent) to $66.3 million due to increased imports of milk and tel­ephones for cellular networks or for other wireless networks;

China – down $21.5 million (35.7 per cent) to $38.8 million due to decreased imports other tubes and pipes and bridges & bridge sections; and

Japan – down $5.3 million (18.4 per cent) to $23.3 million due to de­creased imports of aerials and aerial reflectors of all kinds; parts suitable for use therewith.

Vegetable products – up $20.8 million (150.3 per cent) to $34.6 million due to increased imports of wheat and meslin;

Chemicals and allied products – up $13.0 million (72.6 per cent) to $31.0 million due to increased im­ports of insecticides and similar products;

Vehicles, aircraft & associated transport equipment – up $10.9 mil­lion (30.2 per cent) to $47.0 million due to increased imports of motor vehicles for the transport of goods and used or reconditioned passen­ger motor cars and racing cars;

Prepared foodstuffs, beverages, spirits & tobacco – up $6.9 million (36.1 per cent) to $26.0 million due to increased imports of wine; and

Live animals: animal product¬ – up $6.3 million (31.7 per cent) to $26.2 million due to increased im­ports of frozen sardines and meat of sheep.

China – up $1.0 million (10.1 per cent) to $11.0 million due to in­creased re-exports of frozen fish;

United States of America – up $4.5 million (120.7 per cent) to $8.2 million due to increased re-exports of other aerials and aerial reflectors of all kinds; parts suitable for use therewith;

New Zealand – up $0.3 million (11.0 per cent) to $3.3 million due to increased re-exports of containers for compressed or liquefied gas, of iron or steel;

Tonga – down $2.4 million (43.1 per cent) to $3.2 million due to de­creased re-exports of gas oil (diesel) and light oils & preparations; and

Tuvalu – up $1.6 million (186.7 per cent) to $2.4 million due to in­creased re-exports of gas oil (die­sel).

Imports are foreign goods bought by a country whereas Exports are the goods produced in one country and sold to another country

Feedback: maraia.vula@fijisun.com.fj

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