The International Monetary Fund in its July update of the World Economic Outlook has lowered the global growth forecast for this year to 3.2 percent.

Leading global indicators point to a slowdown in economic activity due to the trade dispute between the United States and China and the general rise in protectionism which has affected Fiji’s major trading partners.

Reserve Bank of Fiji Governor Ariff Ali says the slowdown in consumer spending and investment, is consistent with the lower growth forecast for this year.

Domestic demand did grow recently – albeit at a slower pace, thanks to higher inward remittances, tourism earnings, and private sector credit growth.

Commercial banks’ liquidity increased to $434 million at the end of last month and grew again yesterday, to over $486 million.

Ali highlights the global economic environment is still fraught with uncertainty and the Reserve Bank will continue to closely monitor accordingly.