Buoyant Labour Market Supports Consumption

Improvements in Fiji’s labour market is supporting a strong domestic consumption, accord­ing to the Reserve Bank of Fiji (RBF).

While the labour market remained “tight” due to increases in general migration abroad and employment opportunities via regional labour mobility schemes, increases in job advertisements and Pay As You Earn were signs of improvement, RBF noted in its April Economic Review, released this week.

“Developments in the labour market also supported higher con­sumption activity. Higher inward remittances, income levels, and new consumption lending by com­mercial banks continue to fuel the domestic consumption appetite shown by the increased net Value Added Tax collected in the review period,” RBF said.

Net VAT collection increased by 53 per cent, personal remittances grew by 31.4 per cent while new consumption lending rose by 17 per cent at the end of March.

Overall financial conditions sup­ported both economic recovery and expansion, said RBF, with liquid­ity remaining high at $2.3 billion, pushing lending rates to historic low.

Tourism continued its strong re­covery while other major sectors declined, led by sugar, timber, gold and cement.

Foreign reserves, at $3.3 billion, were sufficient to cover 6.1 months of imports.

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Source: Dionisia Tabureguci

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