Fiji’s merchandise trade deficit widened further, increasing by 20.6 per cent to $2,2222.2 million cumulative to May – reflecting stronger growth in imports relative to exports.
According to the Reserve Bank of Fiji’s (RBF) July economic review, total imports rose by 17.7 per cent to $3,345.1m – largely driven by higher imports of mineral fuels, machinery and transport equipment, and miscellaneous manufactured goods.
“Notwithstanding the wider trade deficit, total exports increased by 12.3 per cent in May to $1,122.9m, underpinned by robust growth in domestic exports (26.5 per cent), particularly for sugar and gold concentrates,” the central bank stated in the economic review.
“This more than offset the decline in re-exports of 3.3 per cent.”
Meanwhile, the RBF stated that remittances continued to grow in the year to June, with inflows rising by 26.3 per cent to $875.2m, while outflows increased by 15.0 per cent to $293.7m.
As a result, the central bank stated that net remittances grew by 32.9 per cent to $581.5m, and reflected the faster pace of growth in inflows relative to outflows.
“The sustained expansion in inward remittances reflects the growing Fijian diaspora, continued participation in overseas employment schemes, and improved access to digital and fintech-based remittance services.”
The RBF stated the increase in outward transfers reflected the rising number of migrant workers residing in the country.
Financial conditions also remain supportive of credit growth and economic activity, underpinned by ample banking system liquidity of around $2b as at July 309, which it stated had helped keep lending rates low.
The central bank stated that broad money expanded in June (9.0 per cent), driven by a notable rise in private sector credit (14.4 per cent).
