The Fijian economy will encounter a steep acsent this year as substantial growth in tourism and consumption tapers off.
The Governor of Fiji’s Reserve Bank, Ariff Ali, says the deceleration is attributed to the continued loss of skilled and semi-skilled workers.
Ali says this will adversely affect productivity and translate to lower domestic demand at the same time.
He said the Central Bank will continue to monitor the latest domestic and global economic developments, and align monetary policy accordingly.
RBF has also projected inflation rate for 2024 to be at a moderate three per cent, as the effects of tax increases subside.
Ali said the positive impact from retreating global food and energy prices will than be realised.
A statement issued by Ali said the annual inflation rate for 2023 was 5.1 per cent, reflecting the effect of higher VAT and tariff rates – as well as the pass-through of imported food and energy prices.
The RBF Governor highlighted that the Fijian economy has rebounded strongly over the last two years, supported by the impressive recovery in the tourism industry.
Ali said the tourism-led boost to the economy improved employment prospects and raised incomes, which were also complemented by a new record inflow of $1.3 billion in remittances.
He said that spending on investment has been lower than expected while the performance of the primary and natural resources suffered due to industry-specific issues with sugar, forest, gold and mineral water outputs.
