Fiji’s economic outlook for 2024 is optimistic, with conditions remaining conducive for growth. The country’s broad money supply increased by 8.4%, and private sector credit rose significantly by 11.4%. These figures are highlighted in the Reserve Bank’s December 2024 Economic Review, which reflects a healthy lending environment for both businesses and households, with lending to businesses growing by 10.9% and to households by 13.3%. This indicates a strong level of confidence within the private sector.
At the end of December, the banking system’s liquidity was robust, standing at $2.4 billion. This surplus liquidity helps maintain historically low lending rates, although time deposit rates have seen a marginal increase in response to Basel III liquidity regulations.
Investment activity is gradually improving, evidenced by a notable 25.9% rise in new investment lending. However, the overall number of building permits has dropped by 35.9%. Despite this decrease, the total value of granted permits has jumped by 97.7%, which is attributed to rising construction costs and a shortage of skilled labor.
According to the Reserve Bank of Fiji, these developments indicate that while economic growth is ongoing, investment levels remain cautiously optimistic.
This positive report suggests that, despite some challenges, Fiji is poised for continued growth in the coming year. The increase in private sector activity and investment lending could pave the way for a more robust economy in the near future.
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