Economy continues to perform well, headline inflation at 4% in Oct – RBF
World oil and food prices drop

Economy continues to perform well, headline inflation at 4% in Oct – RBF

World oil and food prices drop

By Vijay Narayan
Monday 04/12/2023

Despite the slowdown in the global economy, the Reserve Bank of Fiji states that the Fijian economy continues to perform well and is projected to grow by 8.2 percent this year, following a robust 20 percent expansion in 2022 thereby restoring the Gross Domestic Product to pre-pandemic levels.

And the good news is that crude oil prices fell to US$87.41 per barrel as OPEC3 and the United States ramped up production, while world food prices index (FAO) declined by 10.9 percent, led by the fall in prices for cereal and rice, which more-than-offset the increase in dairy prices.

Headline inflation stood at 4 percent in October as higher prices were noted across most categories, with food and non-alcoholic beverages, transport, and restaurants and hotels being the major drivers.

The RBF says the impressive growth in the economy is reflective of the strong recovery in the tourism industry as visitor arrivals cumulative to October totalled 772,172 visitors, 55.3 percent and 2.7 percent higher than the corresponding period in 2022 and 2019, respectively.

With the growing tourist demand, the hotels average daily room rate has also picked up significantly and exceeded pre-pandemic levels, leading to higher revenue earned from rooms sold.

Weak performances were noted in the primary and natural resource sector due to industry-specific issues. Cane yield was down by 8.1 percent and sugar production (down by 13.6 percent) recorded annual contractions as at 30th October underpinned by cane supply disruptions and operational issues.

The RBF says consumption activity has been strong supported by the positive flow-on effects from increased tourism activity, rising incomes as reflected by the rise in Pay As You Earn tax collections by 20.1 percent and higher remittance inflows (21.8 percent) cumulative to October.

Partial indicators for consumption such as net VAT collections (27.6 percent) and new lending for consumption purposes (11.2 percent) recorded annual increases up to October.

FEATURE NEWS
No time frame given for the salvage operations of RFNS Puamau
No timeline has been given on how long the salvage operations for the RFNS Puamau will take as the Fiji Navy has started the de-fuelling process in Fu...
9 hours ago
LATEST NEWS
Chance for a reset
As Prime Minister Sitiveni Rabuka reflects on his position post the extraordinary events of the last two weeks his options may appear intoxicating, ...
9 hours ago

Committee silent on 7-year tax holiday to Fiji Water – Chaudhry
Fiji Labour Party leader, Mahendra Chaudhry says it is surprising that the 2023 Fiscal Review Committee which has submitted a range of taxation ...
9 hours ago

Fiscal Review Committee wants departure tax to be increased
The Fiscal Review Committee is recommending a staggered implementation of the departure tax to $170 from 1st April 2025 and $200 from 1st April 2026 ...
9 hours ago

Govt not considering 30% pay increase for teachers – Prof. Prasad
A 30 percent increase is not something the government is considering for teachers. Deputy Prime Minister and Minister for Finance, Professor Biman ...
13 hours ago

Excitement builds up as Hibiscus Festival coming back after 5 years
Excitement is in the air as Suva braces to hold the mother of all festivals, the Miss Hibiscus Festival which will be held after a lapse of 5 ...
14 hours ago



fijivillage Straight Talk with Vijay Narayan
Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
yb
IN DEPTH
Crisis within FijiFirst relating to the termination of 17 MPs who voted for salary increases
A crisis has erupted within the FijiFirst party relating to the termination of 17 members of parliament who supported the government's motion to ...
4 days ago

Pre-Budget 2024-2025
Pre Budget 2024-2025 budget recommendations and an insight of what people on the ground wish to see in the National Budget
6 days ago

Sayed-Khaiyum case on alleged payment of Saneem's taxes without proper approval
It is alleged that between the 30th of June, 2022 and the 12th of July, 2022 in Suva, whilst being employed in the civil service as the Acting Prime ...
8 days ago

TOP