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Balance Of Payments For June Quarter Of 2016

Fiji’s Balance of Payments (BOP) Statistics shows the value of Fiji’s transactions with the rest of the world in goods, services, primary income, secondary income and capital accounts. It also
10 Dec 2016 11:00
Balance Of Payments For June Quarter Of 2016
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Fiji’s Balance of Payments (BOP) Statistics shows the value of Fiji’s transactions with the rest of the world in goods, services, primary income, secondary income and capital accounts.

It also shows changes in Fiji’s financial claims on (assets) and (liabilities) to the rest of the world.

Three accounts incorporate the BOP, these are the Current Account, Capital Account and Financial Account.

The Current and Capital Account balance stood at a surplus of $60.1 million for June quarter of 2016 when compared to a deficit of $29.7 million a year earlier.

 

This is due to a decrease in the following imports:

 Goods and

 Transportation services

And increase in the following;

 Investment income received and

Other current transfers

 

The Financial Account balance stood at a deficit of $220.7 million in the June quarter of 2016.

This was due to an increase in the outflows of currency and deposits.

When compared to the same period last year, it also recorded a deficit of $200.0 million.

 

Current Account

It records the value of Fiji’s transactions with the rest of the world in goods, services, primary income and secondary income.

The current account balance is the sum of all current account credits less all current account debits.

When the sum of debits is greater than the sum of credits we have a current account deficit.

It showed an inflow of $57.9 million for the June quarter of 2016.

When compared to the March quarter of 2016, it fell by 75.3 per cent or $176.2 million and when compared to the June quarter of 2015, it rose by 283.8 per cent or $89.4 million.

 The balance on goods and services was a surplus of $31.2 million in the June quarter of 2016.

This represents a rise by 154.1 percent ($88.9 million) when compared to the June quarter of 2015.

Goods decreased by $70.9 million mainly due to the decrease in the import of food.

Services increased by $18.0 million mainly due to the decrease in the import of transportation services provided.

These contributed to the improved goods and services balances.

 The balance on primary income was a deficit of $121.6 million in the June quarter of 2016.

This represents a rise by 21.5 percent ($21.5 million) when compared to the June quarter of 2015 as a result of an increase in investment income paid abroad.

 The balance on secondary income was a surplus of $148.3 million in the June quarter of 2016.

This represents an increase of 17.4 percent ($22.0 million) when compared to the June quarter of 2015 due to an increase in other current transfers.

 

Capital Account

Has two components – capital transfers and the acquisition or disposal of non-produced, non-financial assets.

Capital transfers involve the transfer of ownership of fixed assets, or the transfer of funds linked to them, without any counterpart transaction.

It showed a net inflow of $2.2 million for the June quarter of 2016.

When compared to March quarter of 2016 it rose by 46.7 per cent or $0.7 million.

And when compared to the June quarter of 2015 it also rose by 22.2 per cent or $0.4 million.

 

Financial Account

Records financial transactions involving Fiji claims on assets and liabilities to non-residents.

The financial account is classified into assets and liabilities.

These are broken down by type of investment (direct, portfolio, other investment and reserve assets) and instrument of investment.

It recorded a net borrowing of $220.7 million which consisted of net outflows of $131.2 million in equity and $89.5 million in debts for the June quarter of 2016.

When compared to the March quarter of 2016, the net borrowing fell by 339.1 per cent or $313.0 million.

Compared to the June quarter of 2015, the net borrowing rose by 11.5 per cent or $22.8 million.

Direct investment showed a net outflow of $169.5 million in the June quarter of 2016.

This represents a fall of 18.2 percent ($37.8 million) when compared to the June quarter of 2015.

Portfolio investment showed a net inflow of $2.4 million in the June quarter of 2016.

This represents a fall of 56.4 percent ($3.1 million) when compared to the June quarter of 2015.

Other investment showed a net outflow of $20.0 million in the June quarter of 2016.

This represents a fall of 91.4 percent ($213.1 million) when compared to the June quarter of 2015.

Reserve assets showed a net outflow of $33.6 million in the June quarter of 2016.

This represents a decrease of 114.2 percent ($270.6 million) when compared to the June quarter of 2015.


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.

 

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