Increase in new, second hand cars

Second hand veichles waiting to be cleared at the Port of Suva. Picture: JONA KONATACI/FILE

SECOND hand vehicle registration in Fiji has shown an increase of 12.3 per cent in the year to August, showing firm consumption activity in the economy.

New vehicle registrations noted a higher 37.9 per cent growth in the period.

According to the latest review from the central bank, partial indicators such as net VAT collections rose cumulative to July (11.1%) indicating that consumption activity remained over the period.

With Fiji as a consumption driven economy, the central bank also noted commercial banks’ new consumption lending had grown cumulative to August by 16.3 per cent.

This was based on increased lending to the wholesale, retail, hotels & restaurants and private individuals sectors.

Annual decline were however noted in investment activity as shown by the partial indicators.

The central bank said both domestic cement production declined by 21.7 per cent and its sales dropping by 23.0 percent cumulative to August.

New investment lending by commercial banks fell also by 0.1 per cent due to the decline over the year, in lending to the building and construction sector.

Notwithstanding the decline, the central bank stated that the June 2018 Business Expectation Survey shown a positive investment outlook for the next 12 months.

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