Fijian economy now expected to grow by 12.4% this year – RBF Governor
Supply-side constraints poised to ease from next year, inflation rates will likely subside - Ali

Fijian economy now expected to grow by 12.4% this year – RBF Governor

Supply-side constraints poised to ease from next year, inflation rates will likely subside - Ali

By Vijay Narayan
Wednesday 29/06/2022
Reserve Bank of Fiji Governor and Chairman of the Macroeconomic Committee, Ariff Ali

The Fijian economy is now expected to grow by 12.4 percent this year, up from the 11.3 percent growth envisaged earlier.

The Reserve Bank of Fiji Governor and Chairman of the Macroeconomic Committee, Ariff Ali says the ongoing tourism recovery and its flow-on effect on employment, tax collections and overall aggregate demand, as well as the absence of restrictions on economic activity relative to last year, will provide the required tailwinds to the recovery.

The main sectors expected to contribute to the growth outlook are the transport and storage; accommodation and food services; manufacturing; finance and insurance; agriculture and education sectors.

The broad-based economic recovery is envisaged to continue into 2023 and 2024, with the economy forecast to expand by 9.2 percent and 5 percent, respectively.

Despite the growing optimism, Ali says the rising risk of stagflation across the globe is a significant downside risk to the outlook.

Stagflation is persistent high inflation combined with high unemployment and stagnant demand in a country's economy.

The RBF Governor says globally, high inflation rates have led to aggressive monetary policy tightening in advanced countries, which will stall growth and possibly dampen demand for travel to Fiji.

He says a weaker global economy would subdue domestic aggregate demand and slow down the pace of recovery.

In addition, increasing competition from other cheaper destination markets can negate Fiji’s first-mover advantage in our major markets such as Australia and stifle the recent rising trend in arrivals.

The RBF Governor says on a positive note, demand for travel continues to rise globally, thus Fiji can still gain from the expanding pie of travel-ready tourists.

On the inflation front, supply-side constraints are poised to ease from next year, hence inflation rates will likely subside.


Five Squares Father's Day Sale
Five Squares Father's Day Sale

Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
IN DEPTH
2022 Coca-Cola Games
Fiji Secondary Schools Athletics Association General Secretary, Vuli Waqa says they are expecting around 2,500 athletes from 135 schools to participate in this year’s Fiji Finals.
8 days ago

Commonwealth Games 2022
98 athletes carry the hopes of the nation to the 2022 Commonwealth Games
15 days ago

2022-2023 National Budget Debate
The 2022/2023 National Budget Debate full coverage.
22 days ago
FEATURE NEWS
Grammar takes the lead in the Boys Division while ACS leads the Girls Division
Suva Grammar School leads the medal tally in the Boys Division at the Coca Cola Games with 5 gold, 1 silver and 5 bronze after day 2 of competition. ...
15 hours ago
LATEST NEWS
Vosabalavu of QVS breaks Senior Boys Javelin record
Jone Vosabalavu of Queen Victoria School has broken the Senior Boys Javelin record at the 2022 Coca Cola Games. Vosabalavu threw a distance of ...
14 hours ago

Qerewaqa of Holy Cross wins gold in Inter Boys Long Jump
Viliame Qerewaqa of Holy Cross College in Taveuni has won gold in the Coca-Cola Games Intermediate Boys Long Jump with a jump of 6.67 metres. Pita ...
14 hours ago

Kovanalagi wins first gold for Vishnu Deo Memorial School
Lavenia Kovanalagi has secured the first gold medal for Vishnu Deo Memorial School in the Senior Girls Discus with a throw of 36.15 metres. Tamara ...
14 hours ago

Frances Peters gets gold for Grammar in Intermediate Boys Shot Put
Suva Grammar School’s Frances Peters has claimed the gold medal in the Intermediate Boys Shot Put with a throw of 14.75 metres. Atunaisa ...
14 hours ago

MGM sprinters create history after Inoke wins Senior Boys 100 metres and Boletanakadavu wins Senior Girls 100 metres
MGM High School sprinters have created history after Waisale Inoke won gold in the Senior Boys 100 metres final and Kesaia Boletanakadavu of MGM won ...
15 hours ago

TOP