Economy continues to show signs of improvement, driven mainly by tourism-related sectors – RBF Board

The Reserve Bank of Fiji says the economy continues to show signs of improvement, driven mainly by tourism-related sectors.

Since the opening of Fiji’s border in December 2021, 118,812 tourists have arrived in Fiji, mainly from Australia.

In April, 46,680 tourists visited Fiji, more than double the March numbers.

The RBF says the upcoming peak tourism season and the commencement of the cane crushing season will provide a further push to domestic activity in the second half of this year.

Aggregate demand has improved, primarily supported by higher consumer spending and a slight increase in construction-led investment spending.

The labour market has also improved as recruitment intentions rose in the year to April, particularly in the tourism-related sectors.

The RBF says private sector lending has picked-up momentum growing by 2.3 percent in April and is supporting the economic recovery.

It also says the banks remain adequately flushed with liquidity to lend, keeping interest rates at historically low levels.

RBF Governor, Ariff Ali reassures that while the RBF has noted an increase in non-performing loans, the banking system remains sound on the back of adequate provisioning and favourable capital adequacy ratio.