Fiji’s economic landscape appears to be thriving as it heads into 2024, boasting favorable financial conditions for further growth. Recent data reveals that broad money supply grew by 8.4%, while private sector credit saw an impressive rise of 11.4%.
The Reserve Bank’s December 2024 Economic Review indicates strong lending trends, with loans to businesses and households increasing by 10.9% and 13.3% respectively. This data points to a growing confidence among private sector entities in Fiji.
At the end of December, the banking system maintained a healthy liquidity level of $2.4 billion, which supports historically low lending rates, despite a slight uptick in time deposit rates attributed to Basel III liquidity requirements.
Investment activities revealed a mixed picture; although growth remains slow, there are encouraging indicators. New investment lending surged by 25.9%. Interestingly, while the volume of building permits issued plummeted by 35.9%, the total value of these permits skyrocketed by 97.7%. This divergence reflects rising construction costs and a shortage of skilled labor, which could influence future project feasibilities.
Overall, these developments suggest that while Fiji is on a path of economic growth, caution prevails among investors as they navigate the complexities of the current landscape.
This optimistic outlook could pave the way for a more robust economic environment in the coming years, as the steady increase in credit and investment indicates a resilient private sector ready to adapt and grow.
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