Demand remains suppressed: RBF
August 3, 2021 3:15 pm
Economic activity slowed significantly in late April and May as the spread of the Delta variant intensified in the country, worsening Fiji’s socio-economic situation.
However, some pick-up has been noted from June says the Reserve Bank in its economic review as more businesses and citizens adapted to the COVID-19 environment.
Governor, Ariff Ali says despite the domestic economy opening up under strict COVID-19 protocols, aggregate demand remains suppressed as more people have become unemployed or have had their wages and hours reduced.
Ali says partial indicators of consumer spending such as net VAT collections, new consumption lending by commercial banks, new vehicles registrations and electricity consumption recorded annual declines cumulative to June.
On the other hand, second-hand vehicle registrations rose over the same period.
The Governor says investment spending also registered sluggish outcomes in the year to June.
He says the economic uncertainty and mandatory COVID-19 protocols are anticipated to suppress investment plans further in the coming months.