Fiji’s economy recorded a generally positive outturn despite industry-specific challenges in the year.The Reserve Bank of Fiji (RBF) reported visitor arrivals inched up by 0.3 per cent to 901,372 in the year to November.
It said higher arrivals from the United Kingdom (11.3 per cent), US (10.2 per cent), Continental Europe (6.8 per cent) and Pacific Island countries (3.2 per cent) offset the declines from major markets of New Zealand (-2.9 per cent) and Australia (-0.8 per cent), as well as the Asian markets (-6.8 per cent).
Also in the year to November, timber output surged with higher pine wood (69.5 per cent) and mahogany (53.5 per cent) production supported by favourable weather conditions.The RBF stated in the same period, higher electricity production (0.5 per cent) reflected the growth in new customers (1.8 per cent), with renewable sources accounting for 53.0 per cent of total energy generation.
“In contrast, mineral water output fell (-10.6 per cent) owing to weaker demand from the US, as well as planned maintenance works in November,” the central bank said in its December economic review.
It said gold ore production also contracted by 28.2 per cent led by declines at Vatukoula Gold Mines Limited (VGML) (-62.4 per cent), which offset improvements at Tuvatu Gold Mines (23.1 per cent).
“The decline at VGML partly mirrors a shift in production to gold concentrates, which so far this year has totalled 12,400 ounces.
“Similarly, sugar production declined (012.7 per cent) up to the week ending December 15 despite an increase in cane supply (8.0 per cent), largely due to poor cane quality, operational challenges and unfavourable weather conditions.”
Consumption activity remained robust, supported primarily by the lower value added tax (VAT) rate, the RBF stated.
It said new consumption lending rose by 24.3 per cent to $2.1 billion up to November, largely driven by the wholesale, retail, hotels and restaurants sector.
Pay-as-you-earn (PAYE) tax collections also rose 14.8 per cent in line with the increase in wages.
It added inward remittances up to September of 4.3 per cent added further impetus to consumption activity.
The RBF also noted an improvement in investment activity, and said despite the decline in the number of completion certificates issued (-25.1 per cent), the value of certificates was significantly higher (167.8 per cent) cumulative to the third quarter.
It said those increases reflected higher building costs earlier in the year and the execution of high value projects during the year.
Meanwhile, the RBF reported that favourable financial sector conditions supported growth as indicated by the annual expansion in broad money (10.1 per cent) in November.
It stated that was driven by higher private sector credit growth (9.2 per cent), led by credit to business entities and households.
The banking system liquidity, the cnetral bank stated remained sufficient, at around $1.9 billion as at December 30 last year, which helped keep interest rates low, with the outstanding lending rate settling at 4.50 per cent in November.
