Tourism activity and personal remittances continue to underscore consumption activity - RBF

Tourism activity and personal remittances continue to underscore consumption activity according to the Reserve Bank of Fiji.

While giving the economic update for February, the RBF says inward remittances in January 2024 was $89 million, similar to the January 2023 level, following the $1.25 billion record-collection last year.

Increased emigration continues to hinder the labour market, creating shortage of both skilled and semi-skilled workers.

The total number of jobs advertised rose by 29.7 percent to 1,568 vacancies in January, with improved recruitment intentions noted in the community, social and personal services; construction and transport, storage and communication sectors.

Net VAT collections increased by 34.6 percent and PAYE tax rose by 16.8 percent while commercial banks’ new lending for consumption purposes contracted by 7.1 percent.

Investment activity also noted mixed results.

Domestic cement sales, an indicator for domestic construction, expanded by 11.3 percent in January.

New lending for investment purposes fell by 17.7 percent in the same period.

The RBF says a combination of factors such as higher building material costs, supply-chain issues, shortage of skilled labour, challenges in acquiring foreign workers, and regulatory red tapes have delayed investment projects.