Westpac Fiji, senior economist, Krishal Prasad has presented Fiji quarterly economic update titled the Westpac Wave.

The global economy’s better growth prospects early last year quickly turned into concern after Russia’s invasion of Ukraine, coupled with rapid and persistent dimmed forecasts. The main game for financial markets has been trying to gauge the extent of the inflation challenge and how far central banks would ultimately need to go. There is still more tightening to come, and even once this is done, we expect central banks to signal a strong commitment to lowering inflation permanently. This will likely see policy remain highly restrictive for longer than markets currently anticipate. As such, 2023 is already looking like another challenging year for the global economy.

While the impact of volatile global developments can significantly influence domestic economic outcomes in Fiji, there are many positives. As we move forward, the reopening effect continues to boost tourism activity. The successful 2022 General Election and transition to a new Government will likely build confidence and encourage further domestic and foreign investments this year. Consumer spending growth is also anticipated to improve further. The Fijian economy is expected to progress through 2023 on the back of these tailwinds.

Westpac Wave economic update January 2023. Photo: Westpac Fiji

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Source: Westpac Fiji 

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