The Reserve Bank of Fiji has recently announced a significant growth in new credit, which surged by 24.9% as of September 2024. Deputy Prime Minister Manoa Kamikamica highlighted this development during the 6th National Real Estate Conference held in Nadi. He noted that this growth is largely driven by increased lending in the building and construction sectors, as well as a rise in private individual investments, particularly in the second home market.
Kamikamica remarked on the visible investment activity around the country, indicating a positive trend. He expressed optimism about the future, stating the aim for Fiji’s economy is to achieve a growth rate of 5%. This is especially critical as the current average growth rate of 3% poses challenges for addressing the nation’s debt-to-GDP ratio. The Deputy Prime Minister emphasized the importance of creating supportive policy, regulatory, and legislative frameworks to sustain this growth momentum.
The recent economic indicators align with earlier findings from the Reserve Bank of Fiji’s December 2024 Economic Review, which also showcased robust financial conditions in the country. Key metrics revealed an 8.4% increase in broad money supply and an 11.4% rise in private sector credit. Lending to businesses and households has increased significantly, reflecting growing confidence within the private sector. Despite challenges, such as external pressures and a decline in the number of building permits issued, the total value of permits surged dramatically, highlighting rising construction costs and a potential lag in skilled labor availability.
Overall, these positive developments suggest that Fiji is positioning itself for continued economic growth and stability. By addressing challenges and nurturing investment opportunities, there is a hopeful outlook that the economy can achieve its ambitious growth targets in the coming years.
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