Litia Cava 
[Photo: FILE]
Fiji’s payments to the rest of the world far exceeded the money coming into the country in the June quarter.
This left Fiji with a $419.9 million deficit in its current and capital account.
The Fiji Bureau of Statistics stated that the widening deficit was mainly driven by higher spending on imported fuel, transportation services and personal transfers sent overseas.
The current account recorded a $422.9 million net outflow during the quarter, compared with a $14 million outflow in June last year.
In simple terms, Fiji spent much more overseas on goods and services than it earned from selling goods and services to other countries.
The biggest pressure came from the goods and services account, which recorded an $836.1 million deficit.
FBoS states this increased by $639.4 million from the same quarter last year, mainly because of higher imports of mineral fuels, lubricants and related products, as well as increased transportation costs.
Fiji also recorded a $225.8 million deficit in primary income, as more investment income was paid overseas.
This was partly offset by money coming into the country through personal transfers.
The secondary income account recorded a $639 million surplus, an increase of $235.7 million from a year earlier. FBoS said this was mainly due to an increase in personal
transfers received from overseas.
The financial account also recorded a $333.9 million deficit, compared with a $3.4 million surplus in June last year.
FBoS said the change was mainly due to a decrease in currency and deposits received from abroad, higher loans obtained from overseas and changes in reserve assets.
