Fiji’s economic outlook for 2024 appears positive, with favorable conditions supporting continued growth. Recent data from the Reserve Bank indicates that broad money experienced an expansion of 8.4%, while private sector credit increased by a notable 11.4%. This enhancement in financial resources reflects an optimistic sentiment among businesses and consumers.
The December 2024 Economic Review highlights significant growth in lending, with businesses and households receiving loans that grew by 10.9% and 13.3%, respectively. This trend suggests a strong level of confidence within the private sector, which is crucial for sustained economic development.
At the end of December, the banking system maintained a healthy liquidity level of $2.4 billion. This robust financial cushion enables lending rates to remain low historically, but a slight increase in time deposit rates has been observed, attributed to new Basel III liquidity requirements.
While investment activities are still recovering, there are encouraging indicators with new investment lending soaring by 25.9%. Conversely, the number of building permits fell sharply by 35.9%, yet the overall value of these permits surged by an impressive 97.7%, reflecting heightened construction costs along with a shortage of skilled labor.
The Reserve Bank of Fiji notes that although economic growth is progressing, the pace of investment remains somewhat cautious. This scenario may prompt targeted strategies to stimulate investment further and attract skilled labor to maintain the momentum in economic growth.
Overall, Fiji’s financial landscape supports a hopeful and steadfast economic future, indicating resilience and potential for development as the country navigates its growth challenges.
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