Fijian economy to grow by 3.6 percent this year
January 26, 2018 1:07 am
The Fijian economy is expected to achieve a broad-based growth of 3.6 percent this year.
This will be underpinned by higher aggregate demand coupled with strong sectoral performances in tourism and anticipated higher manufacturing and industrial activity.
The Reserve Bank of Fiji says several underperforming sectors such as gold and timber are also expected to rebound this year.
Governor, Ariff Ali, says the government’s expansionary policies should continue to support consumer and investor confidence.
He says strong private sector credit growth predicated on the current low interest rate environment is also conducive to growth.
On the downside, Ali says adverse weather conditions and the somewhat subdued performance in the primary industries represent risks to the domestic economic outlook while the recent increase in global crude oil prices have trickled into higher domestic energy costs.
Nevertheless, the twin monetary policy objectives of the Bank remain intact.
Inflation was 2.8 percent at the end of 2017, slightly higher than the forecast of 2.5 percent.
Higher yaqona and tobacco prices persisted throughout the year and are likely to continue in the months ahead.