Fiji’s economic outlook for 2024 is optimistic, with financial conditions remaining favorable for growth. The Reserve Bank of Fiji reported a notable expansion in broad money by 8.4% and a significant increase in private sector credit by 11.4%.
According to the Economic Review released in December 2024, lending to both businesses and households experienced growth rates of 10.9% and 13.3%, respectively. This indicates a robust confidence within the private sector. Additionally, the banking system’s liquidity was reported at a strong $2.4 billion at the end of December, contributing to historically low lending rates, even though time deposit rates saw a slight increase due to the Basel III liquidity requirements.
Investment activity, while still moderately paced, showed encouraging developments with a 25.9% rise in new investment lending. Interestingly, despite a significant 35.9% reduction in the number of building permits issued, the overall value of these permits increased dramatically by 97.7%. This surge is attributed to higher construction costs and a shortage of skilled labor in the market.
The Reserve Bank notes that while growth is evident, the pace of investment remains cautious. This cautious approach may be wise, potentially allowing for more sustainable growth in the long run.
In summary, Fiji’s economic indicators reflect a positive trend towards growth for 2024, with significant improvements in private sector confidence and lending. Looking forward, stakeholders can remain hopeful for a continued recovery and strategic investment in the country’s infrastructure and services.
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