Report: Bank research team predicts stable rates

Fijian currency. Picture: FT FILE

A REPORT by the ANZ Research team predicts that stable interest rates, combined with capacity constraints in the tourism sector will lay the foundations for a solid recovery in building construction, GDP and employment growth from 2021 for Fiji.

The report – Fiji Economic Outlook – highlights that tighter monetary policy has run its course and liquidity has improved.

“We see the economic expansion continuing in 2020, albeit at a softer pace. The long investment uplift probably peaked in 2019,” the report stated.

“As a result, investment is expected to make a negative contribution to GDP growth.

“However, this will be more than offset by a somewhat better global economy which should support inbound visitors, incoming remittances and service sector demand.”

According to the report, despite fiscal consolidation, tighter funding conditions and weaker growth in key tourism and remittance markets, the authors believe Fiji’s economic expansion, although moderating, continued in 2019.

“This will deliver the country 10 consecutive years of generally solid growth since the global financial crisis-induced downturn of 2009 – the longest period in Fiji’s history. Given the frequent natural disasters the country has endured over that time, this is a remarkable achievement.”

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