Ritika Pratap 
[File Photo]
Fiji is rapidly returning to its pre-pandemic levels of output and is expected to surge ahead of its 2019 levels this year.
ANZ’s International Economist, Kishti Sen, says with production picking up and inbound demand rebounding strongly, so too is growth in import volumes.
Sen says, combined with flat export volumes, this is likely to see Fiji’s balance of goods traded worsen through 2023.
He adds that while tourism receipts are accelerating, they are not sufficient to offset the negative balance on goods.
Further, Sen highlights that net remittances largely cancel dividends and retain earnings offshore.
Hence, a larger deficit in traded goods will result in a worsening current account deficit for Fiji, says the Economist.
In the Pacific Insight, Sen says they believe more of this deficit will be financed out of foreign reserves, pushing both reserves and liquidity lower.
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