Fiji’s financial landscape indicates a promising trajectory for growth in 2024, with broad money increasing by 8.4% and a notable 11.4% rise in private sector credit. The Reserve Bank’s December 2024 Economic Review highlights that lending to businesses and households has expanded significantly, with growth rates of 10.9% and 13.3%, respectively—an encouraging sign of strong confidence within the private sector.
At the end of December, the banking system’s liquidity remained robust at $2.4 billion, which has helped keep lending rates historically low. Nevertheless, time deposit rates have seen a slight increase in response to Basel III liquidity requirements.
Investment activity, though somewhat slow, showed positive movement with a 25.9% increase in new investment lending. Interestingly, there was a 35.9% decline in the number of building permits issued, but the total value of those permits soared by 97.7%. This suggests that while fewer projects are being initiated, the ones that are underway involve higher construction costs and are likely influenced by a shortage of skilled labor.
The Reserve Bank of Fiji notes that these trends indicate ongoing growth, but with a cautious approach towards investment.
Summary: Fiji’s economic outlook for 2024 appears optimistic, with significant increases in money supply and private sector lending. Although investment activities are showing some signs of growth, the pace remains careful due to certain challenges.
Overall, this economic review is a hopeful reminder that despite some challenges, Fiji is positioning itself for sustained growth moving forward.
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