The Reserve Bank of Fiji says the country’s macroeconomic performance for the second quarter of the year is on path with the projected eight per cent growth for 2023.
The central bank in its latest economic review said tourism continues to be the main recovery catalyst, with arrivals in the year to May noting an annual increase of 128.3 percent to 327,392 visitors.
This is 1.7 percent higher than the arrivals recorded in the comparable 2019 period.
However, the RBF states production in the natural resource sectors has been weak in the year to May.
“Consumer spending has increased, supported by higher tourist arrivals, employment opportunities, higher credit and an increased inflow of personal remittances.”
“New consumption loans, inward remittances, and net Value Added Tax collections, a proxy for consumption activity, noted annual gains so far into the year” the June report indicated.
The RBF also states that the 2023-24 National Budget’s expansionary fiscal stance will, on balance, contribute positively towards growth.
In addition, it highlights investment is expected to pick up given clarity on taxes and fiscal policy in the newly announced Budget.
The annual headline inflation rate declined to 0.8 percent in May, from the 1.4 percent recorded in April.