Fiji’s economic landscape is poised for growth in 2024, marked by a significant expansion in broad money, which increased by 8.4%, and a notable rise in private sector credit, up by 11.4%.

The Reserve Bank’s Economic Review for December 2024 highlights encouraging trends: lending to businesses rose by 10.9% while household credit surged by 13.3%, indicating strong confidence in the private sector’s resilience.

As of the end of December, liquidity in the banking system remained robust at $2.4 billion. This solid liquidity level has helped maintain historically low lending rates, despite a minor increase in time deposit rates due to Basel III liquidity requirements.

Investment activity is beginning to show signs of improvement, with a noteworthy 25.9% increase in new investment lending. Although the number of building permits issued saw a significant decrease of 35.9%, the total value of these permits surged by 97.7%. This increase in value is attributed to rising construction costs and a current shortage of skilled labor within the sector.

The Reserve Bank of Fiji (RBF) interprets these trends as an indication that growth is in progress, albeit with a cautious approach to investment.

Overall, these findings reflect a resilient and evolving financial environment in Fiji, suggesting optimism for sustained economic growth in the upcoming year. With ongoing adjustments and improvements in the investment landscape, Fiji is on the path to navigating its financial future more robustly.