Provisional data for Fiji in the month of May 2014 showed the total value of goods imported was $368.6 million and total exports were $204.6 million.

Conclusively, this is a deficit of $164 million, however, compared to the previous month of $239.6 million it is lower by $75.6 million.

In comparing month-on-month, imports have decreased by $256 million or 41 per cent and on the other hand the exports increased by $36.3 million or an increase of 21.6 per cent.

Major Fijian imports were machinery & electrical appliance, mineral products, vehicles, aircraft, vegetables, live animals and base metals.

Compared to the same period last year, notable increases were in vegetable products from $17.3 million to $31.6 million and live animals from $7.9 million to $29.3 million.

Notable decreases were vehicles, aircraft and transport equipment down $236.5 million to $32.3 million, mineral products down by $23.5 million mainly driven by lower imports of aviation fuel.

Chemicals and Allied products lower by $8.4 million to $18 million due to decreased imports of pharmaceutical products.

Notable increases

Notable increases compared to the same month last year is a 170.1 per cent increase due to sugar exports.

This translated into an increase of $38.8 million to $61.7 million, whilst a major decrease of 97 per cent noted in gold exports.

In monetary terns, this was less by $200,ooo to $7 million.

Vanuatu was one of the major export countries for Fiji, together with United Kingdom, US, Australia and New Zealand.

The exports increased by 115.4 per cent for Vanuatu due to the export of flour.

A decrease was attributed from decrease in exports of gold and dalo.

Fijian markets were also engaged in re-exports for some major destination such as Australia, Japan, Wallis & Futuna, Tonga and Kiribati.

Conclusively fuel imports continue to increase and is expected to be in tune with current drought and commercial demand.

On the export side, sugar remains a key revenue earner besides the tourism industry.

The current weakness in the Fijian Dollar against the US Dollar remains and could affect the largest bill in fuel.

Small open economies like Fiji have trade deficits as we need to import on fuel, machinery, food and medicine. However, Fiji’s foreign reserves position remains healthy at above $1.7 billion supported by higher tourism earnings and remittances as well as a sizeable foreign direct investment.

– 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 Treasurer at HFC Bank, Peter Fuata.