Trade Deficit Surpasses Billion Dollar Mark

As imports continue to grow, Fiji's trade deficit now stands at a staggering $1.18 billion compared to $950 million for the same period last year, according to latest statistics released by the Reserve Bank of Fiji.

The RBF in its September report highlights that total imports grew by 23.1% in all categories, 11.6% for intermediate imports, 8.9% for consumption and 2.6% for investment goods.

The Bank also noted that exports also rose by 15.2% in July attributed to higher inflows from sugar, fish, mineral water, timber, sweet biscuits, flour, gold and other domestic exports which were also supplemented by re-exports contributing to a higher growth of 20.9%.

The report also stated that due to poor performances of major sectors, such as cane and sugar, the subdued labour market conditions and the decline by 21.7% in remittances are expected to moderate consumer spending.

The RBF said there are indications that investment conditions are still sluggish while overall labour market conditions are likely to be weak even though partial indicators showed mixed movements.

And as inflation levels stood at an 18 year high of 9.5% at the end of August, official foreign reserves stood at $911.3 million, sufficient to cover 3.6 months of import of goods.