An economic update released by a major bank operating in the country says the second wave of COVID-19 weighs on growth outcomes this year with eyes on the upcoming national budget.
Westpac Fiji, in its Fiji Economic update for July also downgraded its real GDP projections for 2021 to -4.2 per cent from the 2.3 per cent growth projected in April.
According to its senior economist Krishal Prasad, their downgrade is based on the major assumption that international borders will remain closed throughout 2021, resulting in significant contraction in visitor arrivals and decline in all related sector of the economy.
However it was also noted that with nationwide vaccination rollout gaining momentum, Fiji was expected to get the majority of the targeted population vaccinated by the end of the year, which
coupled with the outcomes of the upcoming National Budget would reshape key parts of the economic landscape over the coming year.
“Hence, we expect a much larger rebound in 2022 at this stage,” he said.
