Fiji’s economic landscape is poised for growth in 2024, with key financial indicators remaining positive. Broad money in the country saw a notable increase of 8.4%, while private sector credit expanded significantly by 11.4%.
The Reserve Bank’s December 2024 Economic Review revealed encouraging signs of financial stability, with lending to businesses increasing by 10.9% and household lending growing by 13.3%. This growth reflects a robust confidence in the private sector.
Additionally, the banking system’s liquidity stood strong at $2.4 billion at the end of December, which contributes to maintaining historically low lending rates. However, time deposit rates experienced a slight uptick due to Basel III liquidity standards.
Despite a slow pace in investment activity, there were some bright spots, including a significant 25.9% increase in new investment lending. Interestingly, although the number of building permits issued fell by 35.9%, the total value of these permits doubled, rising by an impressive 97.7%. This increase is attributed to rising construction costs and a shortage of skilled labor in the sector.
According to the Reserve Bank of Fiji, while growth is occurring, caution prevails in the investment landscape.
This positive economic outlook for Fiji suggests a resilient financial environment that could foster further development in the coming year.
In summary, Fiji’s economic indicators for 2024 reveal a landscape conducive to growth, reflecting strong private sector confidence and an adaptive response to emerging challenges in investment and construction. The situation indicates that despite some caution, there is a foundation for hopeful economic progress.
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