Fiji’s domestic economy is estimated to have rebounded by 18.6 per cent in 2022 from a 5.1 per cent decline in 2021.
The Reserve Bank of Fiji (RBF) Insurance Report 2022 stated the growth was largely supported by the better-than-expected recovery in the tourism and related sectors, particularly transport and storage, accommodation and food services, wholesale and retail trade, administration and support services, finance and insurance activities and net indirect taxes.
The report stated this year, the economy was projected to expand by 8.0 per cent, in line with continued recovery in the tourism industry.
“The key sectors contributing to the growth projection include accommodation and food services, transport and storage, agriculture, manufacturing, wholesale and retail sales, finance and insurance, administrative services, construction and net indirect taxes,” it stated.
The report noted sectoral performances last year was generally favourable, with certain sectors rebounding to or surpassing pre-pandemic levels, supported by a stronger-than-expected recovery in tourism and related industries.
Visitor arrivals in 2022 increased significantly to 636,312 tourists (1912.5 per cent), equating to 71.1 per cent of arrivals in 2019.
Similarly, it highlighted the sugar industry reported positive outcomes in the 2022 crushing season, as both cane harvested (15.6 per cent to 1,638,954 tonnes) and sugar production (17.0 per cent to 155,812 tonnes) improved from the comparable periods in 2021, attributed to higher cane supply to the Labasa mill, which rebounded after the floods in 2021.
The output for the timber industry was generally mixed.
While sawn timber (31.6 per cent) and mahogany (11.1 per cent) production noted improvements, wood supply (-34.4 per cent) and woodchip (-43.4 per cent) production declined due to lower outputs from both the Drasa and Wairiki mills, the report stated.
Electricity generation – a partial indicator of economic activity – rose by 15.1 per cent in 2022, with renewable energy accounting for 59.3 per cent of total electricity generation.
Gold production, however, declined by 28.4 per cent in 2022 because of unfavourable weather conditions and low-grade ore.
“Partial indicators for consumption activity portrayed strong results while investment activity generally improved in line with domestic economic recovery.
“Commercial banks’ new loans for consumption purposes increased further in 2022 by 32.1 per cent (to $1,252.3m), boosted by lending to the wholesale, retail, hotels, and restaurants sector (33.0 per cent) and the private individuals category (26.0 per cent).
“Similarly, vehicle registrations also increased by 18.9 per cent in the same period,” the report stated.
It stated net value added tax (VAT) collections rose by 83.6 per cent in 2022, attributed to higher domestic (66.4 per cent) and customs import VAT (59.1 per cent) collections, with the higher global prices of goods and services partially contributing to the increase as well.
“Additionally, retail sales are estimated to have expanded (15.4 per cent) in 2022 after contracting (-4.6 per cent) in 2021.
“On investment, the estimated value of work put-in-place (57.3 per cent), the value of completion certificates (26.2 per cent) and the value of building permits issued (forward indicator for construction) (60.4 per cent) noted positive outcomes in 2022.
“Domestic cement sales (20.3 per cent) and new investment lending (25.0 per cent to $590.7m) also increased in 2022. However, higher building material costs (21.8 per cent) and economic uncertainty surrounding the national elections (which eventuated in December 2022) also weighed on investment activity in 2022.”
