The Fiji Reserve of Fiji has pointed out some “downside risks” to Fiji’s economic outlook.
In its December Economic Outlook, RBF adds these risks include the slow growth among key trading partners, coupled with increased geopolitical uncertainties which can lead to fluctuations in commodity prices.
“Furthermore, New Zealand’s recent slip into recession has significant implications for the Fijian economy, particularly affecting inward remittances and tourism,” states RBF.
“This interplay of international developments could result in elevated imported prices, thereby exerting upward pressure on headline inflation.”
“The impact of this situation is exacerbated by ongoing domestic structural issues and capacity constraints.””
RBF states as the cost of imported goods escalates consumers can face a weakening purchasing power.
This can place additional strain on local businesses that depend heavily on these imports, said RBF.
“On the upside, the continued upbeat performance of the tourism industry and the commencement of pipeline projects in the year ahead could augur well for the Fiji economy.”
