A SHARP drop in exports and modest increase in imports resulted in a 4.8 per cent widening of Fiji’s merchandise trade deficit to $473.2 million in January,
The Reserve Bank of Fiji (RBF) in its latest Economic Review for April said January’s exports dropped by 8.7 per cent while imports grew by 0.4 per cent, data supported by the Fiji Bureau of Statistics, which showed total exports of $190 million against total imports worth $663 million in January.
By export value, the United States topped our export destination for the month, with mineral water, kava and turmeric. However, the value of exports dropped across four of our top five export destinations US, China, Australia, New Zealand with the exception of the United Kingdom, which increased due to sugar exports.
Fijian imports from China, Australia and New Zealand increased in January and dropped in value from Singapore and Japan.
Fiji mainly imports building materials and fertiliser from China, food and electronic goods from Australia and New Zealand, motor vehicles from Japan and fuel from Singapore, according to FBOS data.
“Import growth was underpinned by higher manufactured goods, and food and live animal imports. In contrast, the fall in exports was attributed to a decline in mineral water and re-exported commodities, which outweighed the increases in exports of gold dore and concentrates,” RBF stated.
The central bank is keeping a close watch on external trade movements as it expects the impact of the ongoing war in the Middle East to exert more pressure on our foreign exchange in the coming months due to global fuel price shocks.
“The conflict in the Middle East has emerged as a significant source of risk to both global and domestic economic outcomes,” it stated.
“The ongoing hostilities have driven sharp increases in oil prices, with spillover effects evident across chemicals, technology-related equipment and global food markets.
“With the ceasefire agreement remaining fragile and both parties showing limited willingness to compromise, the risk of extended conflict and its adverse consequences persist.
“Consequently, the magnitude of the impact on the Fijian economy will be largely determined by the duration and severity of the conflict,” RBF stated.
