The Fijian economy grew by 20 percent in 2022, surpassing the Macroeconomic Committee’s earlier estimate of 18.6 percent.

According to the Fiji Bureau of Statistics growth last year was driven mainly by a strong services sector and net indirect taxes.

Reserve Bank of Fiji Governor, Ariff Ali, says while the economy is on track for an eight percent growth this year, sectoral performances remain weak due to industry-specific issues.

Ali says consumption activity has been robust in the review period, evidenced partially by higher net value added tax collections and an increase in commercial banks’ new loans.

The Governor states investment activity continues to note stable recovery, driven by higher domestic cement sales and strong demand for credit in the real estate and second-home buyer categories.

He says financial conditions remain favourable for economic activity, with growth in private sector credit and new lending primarily to households increasing.

On the RBF’s twin monetary policy objectives, the inflation outlook for year-end is now around six percent from the 2.8 percent expected before the national budget.

This upward revision stems from higher duties and taxes announced in the national budget and the recent rebound in global crude oil prices.