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What Our GDP Really Means?

Gross Domestic Product (GDP) for 2015 has been provisionally estimated at 3.6 per cent with a value of $6.7 billion using 2011 prices and this reflects the net value of
19 Nov 2016 11:00
What Our GDP Really Means?

Gross Domestic Product (GDP) for 2015 has been provisionally estimated at 3.6 per cent with a value of $6.7 billion using 2011 prices and this reflects the net value of goods and services produced in Fiji.

The following industries contributed to the economic growth in 2015;

Agriculture, Forestry and Fishing contributed 0.7 percentage points even though there was a decline in the Forestry and Logging industry;

Accommodation and Food Services Activities contributed 0.5 percentage points;

Public Administration and Defence contributed 0.4 percentage points;

Information and communication contributed 0.3 percentage points and

Wholesale and Retail Trade contributed 0.3 percentage points.

Main movements by industry

 

Agriculture

Agriculture was up 8.3 per cent due to increases in the production of yaqona, pineapple and coconut.

 

Forestry

Forestry was down 7.8 per cent due to decreased in the production of pine and mahogany logs.

 

Fishing

Fishing recorded a growth of 3.6 per cent due to increased production in offshore marine fishing and beach-de-mer.

 

Construction

Construction grew by 6.2 per cent and this was due to an increase in non-general government activities.

 

Electricity

Electricity was up 4.7 per cent due to an increase in electricity production.

 

Mining and quarrying

Mining and Quarrying also grew by 4.6 per cent mainly due to higher gold production.

 

Water Supply and sewarage

Water supply and sewerage increased as well by 1.3 per cent resulting from increased supply of water.

 

 

Manufacturing, wholesale and retail trade

Manufacturing and wholesale and retail trade are Fiji’s two leading industries and they recorded growths of 0.8 per cent and 3.1 per cent respectively.

Manufacturing was driven by higher production of paper and paper products and basic metal products.

Wholesale and  retail was driven by an increase in the sale of motor vehicles.

 

Transport and storage

The transport and storage industry grew by 2.7 per cent and this was driven by an increase in air transport and warehousing and support services.

 

Financial and insurance

The financial and insurance industry grew by 2.1 per cent due to an increase in the activities of other monetary intermediation, non-life insurance and pension funding.

 

Information and communication

The Information and Communication industry also grew by 5.7 per cent due to increased telecommunication services.

 

Accommodation, food services

The accommodation and food Services industry was up by 8.0 per cent due to increased accommodation services resulting from higher tourist arrivals in the country.

 

Real estate

The Real Estate Industry increased by 0.7 per cent while Professional, Scientific and Technical Activities grew by 1.8 per cent and this was due to an increase in advertising and research activities.

 

Administrative and support

The administrative and support Services industry grew by 2.6 per cent driven mainly by an increase in rental and leasing activities, travel agency and tour operators.

 

Public administration, defence

Public administration and defence was up 4.9 per cent as a result of an increase in general public administration, foreign affairs and defence services.

 

Education

The Education industry grew by 2.6 per cent due to an increased student enrolment in primary, technical and vocational and higher education.

 

Human health and social work

Human health and social work grew by 5.7 per cent resulting from human health activities of general government.

 

Arts, entertainment, recreation

The arts, entertainment and recreation industry recorded a growth of 3.9 per cent mainly from an increase in botanical garden services and gambling and betting activities.

 

Other service activities

Other service activities grew by 1.6 per cent.

The largest increase was by the agriculture industry growing by 8.3 per cent followed by accommodation and food services industry with 8.00 per cent and then by the information and communication industry with 5.7 per cent.

In terms of base weight, wholesale and retail industry carries the most with 11.7 and this is mostly due to the sale of motor vehicles.

From 2014 to 2015, there was an increase of 26.4 per cent in the sale of motor vehicles and this was the largest increase recorded for the past nine years.

GDP for 2015 decreased by 2.0 per cent when compared to 2014 which recorded 5.6 per cent.

GDP for 2014 was high because of an increase in the Transport & Storage industry which grew by 26.3 per cent and this was mainly driven by an increase in air transport services.

Fiji has been having consecutive growths in the past five years and for 2016 Asian Development Bank (ADB) has revised the GDP to 2.4 per cent because of Tropical Cyclone Winston.

Reserve Bank of Fiji on the other hand forecasted a growth of only 2.0 per cent for 2016 also because of TC Winston and growth is expected to accelerate to 3.6 per cent in 2017 and stabilize at 3.0 per cent in the following two years.
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.

FeedBack: rachnal@fijisun.com.fj

 

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