The Reserve Bank of Fiji says the latest sectoral indicators are showing improvements albeit still weak in comparison to pre-pandemic levels.

In its latest economic review, the RBF says domestic demand is also strengthening as shown by the positive movements in consumption and investment activity.

Net Value Added Tax collections increased further by 8.3 percent in October, partly reflecting an increase in consumer spending stemming from the August payout of the Government’s unemployment assistance.

Governor, Ariff Ali says the influx of personal remittances along with the second payout of the $360 cash assistance and improvement in labour market conditions is expected to provide some additional impetus to consumer spending during the December festive season.

Ali adds the lull in lending to the building & construction sector in  2020 has also noted a turnaround as new loans cumulative to October picked up by 16.5 percent.

The RBF has also seen an improvement in the labour market conditions in October.

The RBF Jobs Advertisement Survey noted a monthly growth of 16.6 percent as firms progressively attempt to return to pre-lockdown normalcy.

Headline inflation is forecast to reach two percent at the end of this year and 2.5 percent in 2022.