Fiji’s economy projected to grow by 2.7%

Fiji's economy is projected to grow by 2.7 percent compared to the earlier anticipated recovery of 1.3 percent.

The Reserve Bank's economic review for last month shows that the economic growth for 2012 and 2013 has been revised upwards to 2.1 percent and 1.9 percent.

The report shows that mixed performances have been noted in the real sector in the year to date as electricity production fell on an annual basis by 2.7 percent cumulative to March this year, driven by lower demand from commercial and residential customers, possibly due to higher tariff rates.

Recent data reflect some upsurge in consumption activity, supported by improved employment conditions.

The Economic review shows that the Job Advertisement survey which is a partial indicator of employment has noted an annual 3.6 percent increase cumulative to March driven by the finance, insurance, real estate & business services sector.

According to the report, consumer spending is somewhat being supported by rising incomes, as indicated by the growth of
19.3 percent in Pay as You Earn collections cumulative to February.

However, real household incomes have been eroding due to higher prices and this continues to be a drag on consumer spending.

On the external front, latest data reveals an improvement in the trade deficit. This improvement has been attributed to a strong growth in exports by 13.3 percent and slower imports growth of 4.1 percent.
 
The Review report says for 2011, exports are projected to grow strongly by 10.3%, following a 21.0% rise in 2010, while imports are expected to rebound by 11.4% this year following relatively low growth of 3.2% in 2010.

Story by: Sneh Chaudhry