Fiji Time: 1:20 PM on Thursday 30 June

Fiji Times Logo

/ Front page / News

Key factors

Ropate Valemei
Friday, August 29, 2014

AS Fiji prepares for a return to a democratically-elected government, progress towards the election has led to increasing confidence in the economy, the International Monetary Fund has revealed.

According to IMF Asia and Pacific Department assistant director Chikahisa Sumi, this will also be supported by increased disposable income and credit expansion.

An IMF mission was in the country last month to conduct discussions with Fijian authorities.

Mr Sumi said GDP growth was projected to accelerate to 3.8 per cent this year, well above the average growth rate over the past decade.

"There are both domestic and external risks to the outlook. Domestic risks are focused on the complex political situation," he said in a statement.

"On the upside, successful election and a smooth transition to reform-oriented democratic government could result in stronger confidence in the economy and higher capital inflows," he said.

On the external risks, he said Australia and New Zealand, the two most important tourism markets for Fiji, could be adversely affected by lower commodity demand from China and elsewhere.

IMF said inflation had remained low partly because of low import prices but pervasive price controls clouded inflation assessment. And while good progress had been made in recent years, it stated structural reforms needed to continue for the country to achieve sustainably high growth and increase resilience to external shocks.

The IMF executive board is expected to discuss the 2014 Article IV consultation in October, this year.








Fiji Times Front Page Thumbnail

Kaila Front Page ThumbnailFiji Times & Kaila Frontpage PDF Downloads

Use the free Acrobat Reader to view.

Westpac
Code Inward TTs Outward TTs
CAD 0.63220.6132
JPY 50.597447.5974
GBP 0.36260.3546
EUR 0.43850.4265
NZD 0.69540.6624
AUD 0.66050.6355
USD 0.48740.4704

from

$0.00

Exchange Rate updated on 29th June 2016

Today's Most Read Stories

  1. Prayer for a spouse
  2. Ready, waiting
  3. FNPF members to receive $239m
  4. Family mourns loss
  5. Chand: Impact of illegal wildlife trading enormous
  6. Sandalwood nursery
  7. Police to use database system to track vehicles
  8. Lack of public convenience
  9. 'SDGs linked to political, parliamentary stability'
  10. Target on sports tourism

Top Stories this Week

  1. Hayne works on 'God's call' Friday (24 Jun)
  2. Early morning catch wows crowd at Labasa fish market Tuesday (28 Jun)
  3. Police confirm discovery at Natadola beach Friday (24 Jun)
  4. Resignation threat Saturday (25 Jun)
  5. Home on a mission Wednesday (29 Jun)
  6. Body parts Tuesday (28 Jun)
  7. Rabuka in Saturday (25 Jun)
  8. Monster fish halts traffic Wednesday (29 Jun)
  9. INTERPOL assists with Natadola gruesome discovery, missing couple Monday (27 Jun)
  10. Police probe body parts find Saturday (25 Jun)