Fiji’s economic outlook for 2024 remains positive, marked by favorable financial conditions that are expected to support growth. Recent data reveals a broad money supply increase of 8.4%, alongside an impressive 11.4% rise in private sector credit.
The Reserve Bank’s Economic Review for December 2024 highlights robust lending activities, with business loans growing by 10.9% and household credit seeing a 13.3% surge, indicative of heightened confidence within the private sector.
At the close of December, the banking system showcased strong liquidity levels at $2.4 billion, enabling historically low lending rates. However, time deposit rates experienced a slight uptick due to Basel III liquidity regulations.
Investment trends appear cautiously optimistic, with new investment lending climbing by 25.9%. Although there was a significant 35.9% reduction in building permits issued, the overall value of these permits skyrocketed by 97.7%. This disparity is likely due to increased construction costs and a skilled labor shortage.
The Reserve Bank of Fiji notes that these developments suggest a cautious pace of investment growth, though the indicators of economic activity signal that growth is indeed underway.
In summary, while challenges such as labor shortages and rising costs persist, the overall economic environment in Fiji shows potential for growth and resilience in 2024, making it a period to watch for positive developments.
As investment begins to pick up momentum, the hope is that Fiji can harness this economic positivity to stimulate further growth and development, improving the lives of its residents.
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