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International Trade In Services

International Trade in Services is the import and export of services between Fiji, the resident country and non-resident countries. It is a major source of foreign exchange for small countries
25 Oct 2014 00:00
International Trade In Services

International Trade in Services is the import and export of services between Fiji, the resident country and non-resident countries.

It is a major source of foreign exchange for small countries like ours because we are dependent on tourism and trade.

Fiji’s export of services in the June quarter of 2014 was $567.7 million compared to only $500 million in the previous three months (March quarter 2014).

This shows an increase of 11.93% which or $67.7 million.  In the same period, $298.6 million was the estimated value of services imported or an increase of $36.4 million or 12.2 per cent.

There was a surplus of $269.1 million in the trading of services in June quarter 2014, $31.3 million (11.63%) more than the March quarter of 2014 surplus of $237.8 million.

The trade in services overall performance is shown in Graph I and as you may find that our total exports exceeds our imports thus a surplus in trading since March quarter of 2013.

The above data is reflective of Fiji’s growth and hub of the Pacific confirmation. As we as a country heavily invest in Telecommunications and computer & information systems.

Our insurance for freight is reflective of our imports but also the potential for freight insurance by local companies.

Nevertheless any services involved in importation via sea or air remain lucrative more so a pacific distribution service would be ultimate for the many islands scattered across the Pacific excluding Australia and New Zealand.

Some surplus in June quarter 2014 attributes:

– Travel services: Shows a surplus of $292.2 million, an increase of $40.7 million when compared to March quarter of 2014.

– Government services: Shows a surplus of $39.4 million, an increase of $5.2 million when compared to March quarter of 2014.  Is this the result of peacekeeping duties that the Government have initiated?

– Manufacturing services: Shows a surplus of $5.3 million, an increase of $1 million when compared to March quarter of 2014

– Financial services: Shows a surplus of $2.3 million, an increase of $0.2 million when compared to the March quarter of 2014 reflecting higher receipts for services provided by financial institutions

– Maintenance and repair services: Shows a surplus of $0.9 million, a decrease of $0.1 million when compared to the March quarter of 2014 due to less earnings for the repair of goods.

Some services that recorded a deficit:

– Telecommunication, computer and information services: A deficit of $24.5 million, an increase of $10.2 million when compared to the March quarter of 2014 reflecting higher payments for computer and information services;

– Insurance services: A deficit of $19.2 million, an increase of $1.0 million when compared to March quarter of 2014 due to insurance paid on imported goods to cover for the damage or complete loss of freight;

– Other business services: A deficit of $12.9 million, an increase of $11.5 million when compared to March quarter 2014.  The major contributing factor is for the payment for professional and management consulting services reflecting 76%;

– Transportation services: A deficit of $9.8 million, a decrease of $7.1 million when compared to the March quarter of 2014 mainly attributed to payments of international freight with 70.4% in total;

– 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.

 




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