Fiji’s economic outlook for 2024 appears robust, with key financial indicators showing significant growth. According to the Reserve Bank’s Economic Review for December 2024, broad money supply increased by 8.4%, while private sector credit grew by an impressive 11.4%. This indicates a healthy financial environment and strong confidence among businesses and households.
Lending activity also demonstrated a positive trend, with loans to businesses and households rising by 10.9% and 13.3%, respectively. This growth in credit reflects an optimistic sentiment among lenders and borrowers alike, bolstering the economy.
Moreover, liquidity in the banking sector remained strong, holding at $2.4 billion by the end of December. This stability supports the continuation of low lending rates, although some upward pressure on time deposit rates has been noted due to Basel III liquidity requirements.
Investment activity showed signs of growth, highlighted by a 25.9% increase in new investment lending. Even though the number of building permits issued has dropped by 35.9%, the total value of these permits surged by 97.7%. This discrepancy suggests that while there may be a decrease in projects initiated, the remaining projects tend to be larger, likely due to rising construction costs and a shortage of skilled labor.
The Reserve Bank of Fiji indicates that although the economy is on a growth trajectory, the pace of investment remains cautious. This cautiousness, however, may set the stage for more sustainable and strategic growth in the future.
In summary, while challenges persist, the key indicators of economic growth in Fiji paint a hopeful picture for 2024, suggesting that with continued confidence and investment, the economy may be well-positioned for further advancements.
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