CONSUMER spending remains one of the strong forces powering Fiji’s economy, with the latest economic review from the Reserve Bank of Fiji (RBF) revealing robustness in earnings and consumption loans.
Partial economic indicators such as Value Added Tax (VAT), Fiji National Provident Fund employment data, consumption-related loans and vehicle registrations are telling the story behind Fiji’s spending economy.
New consumption-related loans, a leading indicator of consumption activity, grew by a massive $835million on a yearly basis (up to April, 2025), a growth of 65.3 per cent compared to the same period last year, driven by the wholesale, retail, hotel & restaurant sectors, which accounted for 71.7per cent of that growth, according to RBF’s May Economic Review.
Net VAT collections were 10per cent higher for year (January to April, 2025) compared to the same period last year, attributed to higher domestic collections, which rose by 14.4 per cent and customs (up 12 per cent).
The rise in domestic collection was partly attributed to higher wages.
“Preliminary Quarter 1 data from the FNPF shows that the number of registered employees and their wages have, on average, increased by close to three per cent and 10 per cent respectively,” RBF stated.
“Employment and wage growth coupled with an inflow of remittances continue to support households’ ability to spend.”
Inward remittances in the first four months of this year totalled $448.5million, an increase of 10.4per cent compared to the same period last year, with a majority of funds received via mobile money channels, according to RBF.
Total vehicle registration also rose by an annual 28.1 per cent into April, driven by demand for new vehicles (up 34 per cent) and second-hand vehicles (up 23.6).
Electricity consumption also increased by 1.9 per cent in the review period, with higher usage registered by both domestic and industrial users.
Note: This article was first published on the print version of the Fiji Times dated June 14, 2025
