National Budget to push further economic growth: RBF
July 31, 2018 5:00 am
The Reserve Bank in its latest economic review says the National Budget announced last month will add further drive to economic growth this year and in 2019.
The fiscal year 2018-2019 net deficit is $414.2 million, equivalent to 3.5 percent of GDP.
The RBF says this will emanate from the budgeted Government revenue of $4,236.4 million and Government spending of $4,650.6 million.
It says consequently, Government debt is expected to increase to $5,583.2 million at the end of July next year, equivalent to 47.8 percent of GDP.
The RBF says sectorial performances have been positive with increases noted in visitor arrivals, gold, and timber production.
Strong aggregate demand, particularly consumption spending continues to support the Fijian economy.
Both new and second hand vehicle registrations grew in the year to June together with higher consumption-related credit.
The turnover from wholesale and retail trade also rose on an annual basis cumulative to March.
The RBF says furthermore, Government spending on disaster rehabilitation programmes’ post-April floods is anticipated to provide further boost to the wholesale and retail activity in the second and third quarters of this year.
It says going forward consumption activity should remain robust given the accommodative monetary policy and various incentives and policies announced in the new budget.
The RBF says looking ahead, post disaster rehabilitation, increased capital spending by Government and investment initiatives announced in the Budget is likely to spur investment and construction related activities in the medium term.