Fiji’s economic outlook for 2024 appears positive, with favorable financial conditions that support growth. According to the Reserve Bank of Fiji’s Economic Review for December 2024, broad money supply has increased by 8.4%, and private sector credit has risen by an impressive 11.4%. This indicates a robust level of confidence within the private sector, as lending to businesses grew by 10.9%, and loans to households surged by 13.3%.
The banking sector’s liquidity remained strong at $2.4 billion at the close of December, contributing to historically low lending rates. However, time deposit rates experienced a slight rise as a result of Basel III liquidity requirements.
Despite a slower pace in overall investment activity, there are encouraging signs highlighted by a 25.9% increase in new investment lending. Interestingly, there was a notable 35.9% decrease in the number of building permits issued; nevertheless, the total value of these permits increased by 97.7%. This discrepancy may be attributed to rising construction costs and a shortage of skilled labor.
The Reserve Bank of Fiji notes that while the indicators suggest growth is taking shape, the overall investment landscape remains cautious.
In summary, Fiji’s financial conditions are aligning favorably for economic expansion, fostering a positive climate for both businesses and households. As the investment landscape evolves, it may pave the way for more robust growth and development in the future, provided the challenges in labor and construction costs are addressed. This sense of optimism reflects the resilience of Fiji’s economy and the potential for continued recovery and growth in the upcoming year.
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