Slowdown in the world economy is impacting Fiji: Governor
June 17, 2019 12:40 pm
There have been a lot of instances where the world economy has slowed down.
Reserve Bank Governor Ariff Ali says the slowdown in the world economy this time is impacting Fiji more than ever before because all of Fiji’s major trading partner economies are expected to slow down.
Ali says Fiji relies on Tourism which is about one-third of our economy and if Australia, New Zealand and US economy slows down it has an impact.
“Sometimes the world economy slows down because the US is not doing well but what helps us in Fiji is that Australia and New Zealand economy tend to be strong. In the more recent case, the US, Australia and New Zealand economies are expected to slow down and we rely a lot on tourism.”
Ali says while the world’s economy is slowing down, oil prices are going up.
He adds normally when world economies slow down the crude price goes down which reduces the cost of businesses and transportation.
He says the International Monetary Fund is projecting there will be a slight rebound in the world economic growth next year which they will closely monitor.