Ritika Pratap 
[File Photo]
Investment indicators in Fiji signal generally positive performance, but the prevailing high-cost environment continues to weigh on activity, according to the Reserve Bank of Fiji’s latest economic review.
The RBF noted that commercial banks’ new investment loans increased by 12.2 percent cumulatively to March, with significant credit momentum in building & construction (39 percent) and second-home purchases (around 80 percent).
Domestic cement sales also rose by 8.6 percent during the same period, supported by sustained market demand.
However, the RBF highlighted that building material prices remain elevated, increasing by 3.8 percent annually in the first quarter of 2025, contrasting with a decline in the same period of 2024.
Furthermore, the February 2025 Business Expectations Survey indicated an increased medium-term business intention to invest in plant & machinery compared to the previous survey.
Conversely, short-term investment plans in buildings for the next 12 months have declined below prior survey levels.
Regarding overall business sentiment, the February BES showed that businesses generally remain optimistic about future conditions, although less so than in the previous survey.
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