Fiji’s economic landscape appears to be poised for growth in 2024, with positive indicators reported in the latest economic review by the Reserve Bank of Fiji. Broad money supply has increased by 8.4%, while private sector credit has risen significantly by 11.4%. These changes suggest a conducive environment for further economic expansion.
The economic review highlights a notable increase in lending, with credit to businesses growing by 10.9% and to households by 13.3%, indicating robust confidence among private sector entities. The banking sector’s liquidity remains strong at $2.4 billion as of the end of December, allowing lending rates to remain historically low, although time deposit rates have seen a slight increase due to Basel III liquidity regulations.
Investment activity is beginning to show promise, with a 25.9% increase in new investment lending. However, despite a significant 35.9% decrease in the number of building permits issued, the total value of these permits surged by an impressive 97.7%. This disparity indicates rising construction costs and a shortage of skilled labor within the sector.
The Reserve Bank of Fiji notes that while growth is indeed happening, the overall pace of investment continues to be cautious. This suggests a potential area for improvement and a call for strategies to stimulate further investment amidst current economic conditions.
Overall, these developments are encouraging, indicating that Fiji is on a positive trajectory towards economic growth, fostering hope for continued improvement and stability in its financial landscape.
In conclusion, the optimistic indicators reported in Fiji’s economic review reflect a resilient economy and a strong outlook for future growth, despite some existing challenges in the investment sector.
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