The tourism led economic recovery has kept pace and the recently announced 2023-2024 National Budget will provide additional stimulus and support economic activity going forward.
Reserve Bank of Fiji Governor and Chair of the Board, Ariff Ali says the recovery in tourism coupled with improvements in labour demand and income, continued growth in personal remittances and new consumption loans have underpinned the steady growth in consumer spending so far into the year.
Ali says investment spending has improved relative to last year and is expected to pick up further from the second half of the year following the announcement of the national budget.
In contrast, production in the natural resource sectors such as forestry, mining and mineral water has noted annual contractions so far into the year due to industry-specific supply-side issues and lower demand.
On the financial sector, the Governor highlighted that there has been a continuous expansion in private sector credit activity (6.5% in May) while the more than ample banking system liquidity ($2.5 billion as of 12/07) has kept lending rates at historically low levels.
Ali says overall the financial system remains stable with adequate capital and provisioning.
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