Fiji’s economic outlook for 2024 remains positive, with financial conditions conducive to growth. The latest Economic Review from the Reserve Bank reveals significant expansion in the financial sector, featuring an 8.4% increase in broad money and an 11.4% rise in private sector credit.
Lending to businesses and households has also seen a healthy uptick, with growth rates of 10.9% and 13.3%, respectively. This surge indicates robust confidence among the private sector, which is crucial for sustained economic development.
At the end of December, liquidity in the banking system was notably strong at $2.4 billion, enabling historically low lending rates. However, time deposit rates experienced a modest increase due to new Basel III liquidity requirements.
Although investment activity remains relatively slow, there are signs of recovery, evidenced by a 25.9% increase in new investment lending. Conversely, while the number of issued building permits dropped by 35.9%, their total value soared by 97.7%, highlighting escalating construction costs and a scarcity of skilled labor.
The Reserve Bank of Fiji suggests these trends indicate cautious but steady growth in the economy.
In summary, Fiji is positioning itself for sustained economic health, showing promising signs despite the challenges. As the country navigates these waters, the focus on bolstering investment and addressing workforce gaps can pave the way for a more robust economic future.
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