RBF says Fijian economy is expected to grow by a lower 1% in 2019, from 3.5% growth in 2018

RBF says Fijian economy is expected to grow by a lower 1% in 2019, from 3.5% growth in 2018

By Vijay Narayan
06/12/2019

The Reserve Bank of Fiji states that the Fijian economy is expected to grow by a lower 1 percent in 2019, from the 3.5 percent growth last year due to the persistent weak business confidence and reduced government spending.

The RBF says latest domestic sectoral performances reveal mixed outcomes.

In the year to October, low ore quality and difficult mining conditions led to a decline in gold production, dwindling construction activity contributed to lower pine (-12.9%) and sawn timber production (-10.8%) and lower foreign demand led to lower woodchip production.

The RBF says on the upside, as at 25th November 2019, both cane (2.9%) and sugar production (0.7%) increased marginally over the year. Mahogany production has also improved significantly following poor performance in the past two years and expanded by 61.7 percent so far into the year.

Electricity production (+3.5%) and consumption (+4.1%) both increased up to the third quarter of the year while industrial production index noted a marginal 2.0 percent increase in the first half of the year.

The Reserve Bank says in the services sector, visitor arrivals noted an annual growth of 3.2 percent cumulative to October driven by higher number of tourists from the United States, New Zealand, Japan and Pacific Islands. 

In the year to October, commercial banks’ new lending for consumption purposes declined by 6.8 percent while domestic VAT (+2.4%) only noted a marginal increase. Over the same period, both new and second-hand vehicle registrations declined. Similarly, new bank lending for investment purposes shrunk by 20.1 percent in the year to October while domestic cement sales declined by 8.7% cumulative to September, pointing to sluggish construction activity.

The Reserve Bank of Fiji also says recruitment intentions have also softened in line with the moderating economic activity. As per the RBF’s Job Advertisement Survey, the total number of job vacancies declined by 1.4 percent in the year to October on account of lower recruitment intentions for the transport, storage and communication, electricity and water, mining and quarrying, agriculture and forestry and fishing sectors.

Excess liquidity in the banking system grew over the month in October by 0.5 percent to $615.8 million, largely due to an increase in foreign reserves.

The annual inflation rate declined to 0.9 percent in October, lower than the 0.4 percent increase noted in October and much lower than the 5.2 percent growth recorded in the same month in 2018. The Reserve Bank says this is largely attributed to lower prices noted for the communication, alcoholic beverages, tobacco and narcotics, housing, water, electricity gas and other fuels and transport categories.

Foreign reserves continue to remain at comfortable levels and were around $2.190 billion at the end of November, sufficient to cover 5.1 months of retained imports of goods and services.

Meanwhile the world economy this year is expected to grow at its slowest rate since the global financial crisis. A downturn in manufacturing and investment activity, costlier global trade and ongoing policy uncertainty are weighing on global and trading partner growth.

FEATURE NEWS
Increased regulatory requirements for mobile wallets including MPAiSA
With mobile wallet users now having to comply with additional regulatory requirements to continue using the service, Vodafone Fiji has announced that ...
14 hours ago
LATEST NEWS
Burger King provides $30,000 to support education for needy children
Thousands of underprivileged children in Fiji are one step closer to accessing better education, thanks to a generous $30,000 donation from Burger ...
13 hours ago

Man arrested for allegedly destroying idols at Samabula Sanatan Shiv Mandir in broad daylight
A man has been arrested and is being questioned for allegedly entering and destroying idols at the Sanatan Shiv Mandir in Samabula in broad ...
13 hours ago

Specialised cane harvester for hilly terrain to arrive soon
Specialized hilly terrain cane harvester will soon arrive in Fiji as part of a research and development project under the Sugar Research Institute of ...
13 hours ago

Fiji now has the world’s fastest growing HIV epidemic according to new UNAIDS report
Fiji now has the world’s fastest growing HIV epidemic. A UNAIDS report titled 2025 Global AIDS Update, AIDS, Crisis and the Power to Transform, ...
17 hours ago

Sanjay Kaba bail variation ruling to be given next Tuesday
The bail variation ruling for Managing Director of Houng Lee Kaba Jacob Limited and former Director of Telecom Fiji Limited, Sanjay Kaba will be ...
18 hours ago



fijivillage Straight Talk with Vijay Narayan
Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
IN DEPTH
Professor Prasad on fijivillage Straight Talk With Vijay Narayan
The show will focus on the 2025/2026 National Budget.
3 days ago

Tui Nayau and Tui Lau Installation
The ceremony for the installation of the Tui Nayau Sau ni Vanua o Lau will be held tomorrow, while the installation ceremony of the Tui Lau will be held in Tubou on Thursday.
5 days ago

CFL 40th Birthday
CFL’s 40th Anniversary celebrations to culminate with free concert at Albert Park on ...
8 days ago

TOP