Fijian economy is forecast to expand by around 2.3 percent through 2021 – Westpac

The Fijian economy is forecast to expand by around 2.3 percent through 2021 and increase by 12.2 percent in 2022, recovering from the COVID-19 related estimated 17.4 percent contraction during 2020.

This is according to the April 2021 Fiji Economic Update by Westpac.

The report says nonetheless, the output is not expected to return to pre–COVID levels by year-end or even next year.

It further says the key dynamics shaping the outlook are the anticipated re-opening of borders towards the end of the year, and a tailwind from ongoing fiscal and monetary policy stimulus.

The report adds Fiji’s success on the health front over the past year, along with the vaccine rollout now, has enabled the economy to carry on domestic activity and spending, which has managed to keep the economy somewhat afloat.

It adds nonetheless, the recent detection of new COVID-19 cases in the community, and the resulting lockdowns in certain areas pose a significant downside risk to the outlook.

The report states consumer and business confidence is yet to fully normalise but is fuelled to some extent through the vaccine rollout.

It also says notwithstanding some positives, the recovery path will continue to be buffeted by temporary setbacks both internationally and locally.