Weak performances from most sectors of the Fijian economy as a result of COVID-19 will lead to a sharper contraction of the economy.
This was confirmed by the Reserve Bank of Fiji in its March Quarterly Economic Review released this week.
“In 2020, the Fijian economy is now expected to decline more sharply than the earlier estimate of -4.3 per cent on account of the catastrophic impact of COVID-19,” the RBF said.
“With travel restrictions and border closures imposed by Fiji’s major trading partner countries, the tourism industry along with the broader economy is expected to be severely affected.”
Visitor arrivals in the March quarter fell by 36.6 per cent over the previous quarter but declined by 18.7 per cent on a year-on-year basis, attributed to “flight restrictions, flight cancellations, diminished travel appetite and falling income in source markets due to COVID-19.”
Drops in production and earnings were also recorded in gold, timber, consumer spending, and VAT collection.
