SUNCITY

Economy Poised For Growth

Fiji’s economy is poised to grow for the seventh consecutive year in 2016. At the same time, Fiji’s present foreign reserves stands at $2billion, which is expected to cover the
29 May 2016 13:32
Economy Poised For Growth
Deputy Governor Reserve Bank of Fiji Ariff Ali (left), and Attorney-General and Minister for Finance Aiyaz Sayed-Khaiyum (right), at the Budget Forum in Lautoka yesterday. Photo: Charles Chambers

Fiji’s economy is poised to grow for the seventh consecutive year in 2016.

At the same time, Fiji’s present foreign reserves stands at $2billion, which is expected to cover the next five to six months of imports.

Deputy Governor Reserve Bank of Fiji, Ariff Ali said the economy was expected to record a positive growth of 2.4 per cent.

However, indications given by Mr Ali were that the country was expected to see an even better year in 2017 with forecasted growth in all sectors.

This is expected to flow on to next year with a predicted higher growth.

Mr Ali said this was despite Fiji’s strongest ever cyclone, TC Winston, hitting Fiji and leaving a trail of widespread destruction.

“The only other time the economy grew for seven consecutive years was from 1970 to 1976,” Mr Ali said.

“While TC Winston, the strongest cyclone to hit Fiji, caused widespread damage, the Fiji economy is still expected to record a positive growth of 2.4 per cent for 2016.

“The growth rate is expected to accelerate to 3.6 per cent next year.”

Mr Ali said the key driver for growth in 2015 was the tourism sector which was expected to have another record year in terms of arrivals and earnings this year.

“In addition, the construction sector and the wholesale and retail trade are expected to positively contribute to the growth this year.

“Next year’s growth is forecast to be broader- based with all sectors expecting to grow,” Mr Ali said.

He said in line with the positive economic growth, labour market conditions were positive.

“RBF’s job advertisements survey reveals that recruitment intentions rose by 19.1 per cent in the first four months of 2016 after registering 18.7 per cent rise in 2015.”

He said RBF’s twin objectives of maintaining low inflation and comfortable foreign reserves remained intact.

“Inflation while rising to 3.8 per cent in April is expected to slow down to two per cent by year end.”

 

Edited by Manasa Kalouniviti

Feedback:  charles.chambers@fijisun.com.fj

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