The Reserve Bank of Fiji says labour market conditions in the country have deteriorated further given the layoffs and reduced hours in line with the halt in tourism activity, lockdowns and the deterioration in economic activity.
The RBF says as at 29th April, 65,800 COVID-19 Withdrawal Scheme assistance applications have been received by FNPF as a result of the pandemic.
Consumption indicators are also weak given the relatively modest growth in new consumer credit by 1.9% and remittance inflows by 5.9% in the year to March.
Net VAT collections have decreased by 19.2%.
Registrations for new vehicles are down by 30.8% and second-hand vehicles are down by 58% in the same period.
Domestic credit growth decelerated to 4.8% in March, from 8.2% a year ago, driven by the slowdown in lending to the private sector amid commercial banks’ reduced lending to private sector business entities and private individuals.
As such, commercial bank lending rates stabilised while new time deposit rates declined further.
The RBF also says that excess liquidity in the banking system remained adequate at $590 million at the end of March. As at 29th April, excess liquidity rose to $723.5 million, owing to an increase in foreign reserves and a decline in currency in circulation which more-than-offset the increase in statutory reserve deposits.
