GDP for Fiji for the year 2014 showed an increase of 5.3 per cent over 2013.

The GDP value of $6.4 billion was estimated using 2011 prices and reflects the net value of goods and services produced in Fiji.

An ideal GDP growth would be between the ranges of two to four per cent. If the growth is less than two per cent, then the economy is not in a healthy state.

If more than four per cent for several quarters, it usually means that prices are rising quickly over a short period of time with no underlying demand for the product itself or asset bubble.

When the economy is growing too fast, it overheats and enters the contraction phase.

Agriculture, forestry and fishing

Agriculture was down 2.4 per cent due to decreases in production of taro, yam and coconut.  Forestry was up 19.2 per cent due to increases in the production of Pine and Native Forest logs.  Fishing recorded a growth of 1.4 per cent due mainly to increased production in Offshore Marine Fishing.

Manufacturing, transport & storage and wholesale & retail

Fiji’s two leading industries, Manufacturing and wholesale and retail trade recorded growths of 2.1 per cent and 1.2 per cent respectively.  The growth in Manufacturing was driven by production increases of wood and wood products and food products.  On the other hand, growth in the Wholesale and retail industry was driven by an increase in the sale of motor vehicles.  The Transport and Storage industry grew by 26.3 per cent and this was mainly driven by increase in air transport services.

Construction, electricity, mining & quarrying and water supply & sewerage

Construction grew by 9.0 per cent due mainly to an increase in Non-general Government activities.  Electricity increased by 0.4 per cent while mining and quarrying recorded a decline of 2.4 per cent mainly due to lower gold production.  Water supply and sewerage grew by 5.4 per cent.

Accommodation & food services, information and communication and financial & insurance

The Financial & insurance industry was up 13.0 per cent due to an increase in the activities of commercial banks and insurance companies.   The Information & communication industry grew by 3.1 per cent as a result of an increase in programming and broadcasting services.  The Accommodation & food services industry recorded a growth of 3.4 per cent as a result of an increase in accommodation services.

– 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 the HFC Bank, Peter Fuata.