THE Reserve Bank of Fiji is expecting a boost in construction activities this year and the next from tourism investments and state capital projects.
The central bank mentioned this as it released its economic review for the month of July.
The review expected rise in construction activities from projects such as the casino and resort development in Denarau, Peppers Naisoso Apartments, Grand Pacific Hotel as well as the Nausori Airport upgrade, the National Stadium facelift, Raiwai housing project and other infrastructural upgrades in resource based sectors such as mining, forestry and fishing.
Consumer spending remained upbeat in May, indicated by an annual growth of 11.8 per cent in domestic Value Added Tax (VAT) collections.
The liquidity level, however, rose by $4.6 million to $540.1 million in July, led by a $26.6 million increase in foreign reserves and a decline in government's central account balance by 87.3 per cent to $0.7 million.
However, the RBF said, these were partly offset by a 3.8 per cent ($15.1m) growth in statutory reserve deposits and a 3.0 per cent ($14.7m) increase in currency in circulation.
"New lending for consumption purposes noted an increase of 88.4 per cent to $56.9 million during the same period.
"In the coming months, higher disposable income as a result of lower income tax rates, combined with an anticipated increase in visitor arrivals should continue to support consumption activity this year," the review said.
"The labour market noted some improvements as the number of vacant positions advertised in the year to June rose annually by 5.7 per cent."