Growth in vehicle registrations
4 August, 2018, 5:13 am
NEW and second hand vehicle registrations grew in the year to June – indicating strong aggregate demand and consumption spending in the first half of this year.
According to the Reserve Bank of Fiji’s (RBF) Economic Review for the month ended July released this week, new vehicle registrations grew by 47.6 per cent while second hand vehicles grew by 8.8 per cent in the year to June.
Compared with the same period last year, new vehicle registrations only rose annually to June 2017 by a mere 4.9 per cent while second-hand vehicle registrations contracted by 31.3 per cent, which was reflective of the impact of duty changes imposed on hybrid vehicles in the 2017/2018 financial year.
With Fiji as a consumption driven economy, strong aggregate demand, particularly consumption spending continues to support the Fijian economy.
The central bank also noted higher consumption-related credit in the year to June period with a recorded growth of 19 per cent.
The turnover from wholesale and retail trade also rose on an annual basis by 4 per cent cumulative to March.
However, the central bank stated that Government spending on disaster rehabilitation programs post-April floods is anticipated to provide further boost to the wholesale and retail activity in the second and third quarters of 2018.
“Going forward consumption activity should remain robust given the accommodative monetary policy and various incentives and policies announced in the FY2018-2019 National Budget,” the review stated.