COVID-19 Budget: Imports and Exports projected to contract
27 March, 2020, 10:25 am
Fiji’s exports and imports are projected to contract in 2020.
This is stated in the economic and fiscal update supplement to the COVID-19 supplementary budget that was presented in Parliament last night.
Exports in 2020 is projected to contract by 3.4 percent while imports in 2020 is also projected to fall by 9.3 percent.
Exports will be affected by projected global economic slowdown and reduced export demand from China and other trading partners.
“Almost all categories of export are anticipated to decline as the outbreak drags down demand and commodity prices,” said Minister for Economy Aiyaz Sayed-Khaiyum.
Imports will be impacted by declines anticipated in imports of mineral fuel due to fall in prices of crude oil, machinery & transport equipment, manufactured goods and food & live animals, states the supplement.
“The muted global demand for oil amidst weaker global activity, widespread airline grounding, and recent moves by state actors to flood the market with supply have pushed down oil prices to around US$25 per barrel, with the likelihood of further declines in the coming weeks.”