Fiji’s economic outlook for 2024 appears promising, with financial conditions remaining supportive of growth. The broad money supply increased by 8.4%, and private sector credit rose significantly by 11.4%.
According to the Reserve Bank’s December 2024 Economic Review, lending to both businesses and households has shown healthy growth rates of 10.9% and 13.3%, respectively. This reflects a robust level of confidence within the private sector.
At the end of December, liquidity within the banking system was a strong $2.4 billion. This surplus has contributed to maintaining historically low lending rates, although there has been a slight uptick in time deposit rates, attributed to the Basel III liquidity requirements.
Investment activity is slowly gaining momentum, highlighted by a notable 25.9% increase in new investment lending. However, this comes in the context of a significant 35.9% decrease in issued building permits. Despite this drop in number, the total value of permits jumped by an impressive 97.7%, indicating rising construction costs and a shortage of skilled labor in the sector.
The Reserve Bank of Fiji indicates that while positive growth trends are evident, investment remains cautious. This cautious approach reflects the careful balancing act businesses and investors are undertaking in an evolving economic landscape.
Overall, the signs of recovery and growth in Fiji’s economy are encouraging, laying a foundation for hopeful future developments.
This positive narrative of economic stabilization and growth suggests that Fiji is on a path that could lead to enhanced investment opportunities and improved living conditions for its citizens.
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