Fiji’s central bank predicts further contraction of local economy

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The Reserve Bank of Fiji predicts a further contraction of the economy this year as a result of the significant decline in tourism activity and its knock-on effects to the rest of the economy.

In its June economic review, the central bank noted that given the weakening domestic economy, overall labour market conditions had worsened as reflected by partial indicators.

Giving an update on the COVID-19 withdrawal scheme, the RBF stated that 85,959 FNPF members received about $54.2million under the scheme in phase one, while 15,920 members would be paid around $17.5m in phase two over a period of 10 weeks.

It said the number of jobs advertised contracted by a significant 48.8 per cent on an annual basis up to May, indicating depressed recruitment intentions and business activities.

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