ECONOMIC OUTLOOK:
$2.45 Billion Is New Record For Foreign Reserves
Last month, the Reserve Bank of Fiji reached a new record of $2.45 billion on foreign reserves.
This was highlighted by Caroline Waqabaca, Chief Manager Economics for the Reserve Bank of Fiji during her presentation at the Fiji Institute of Accountants seminar yesterday. She presented an update of the Fijian Economy.
Reserve levels are expected to remain constant till the end of the year and the outlook in the near term remains positive, she says.
The highest foreign reserve recorded was $1,944 billion in 2015.
The growth prospects for the economy remain favorable following the lower than expected growth last year of 0.4 per cent. “This year the growth rate is forecasted around 3.8 per cent.
“Prospects for the next two years remain positive given that a few of our primary sectors are expected to recover and do much better.
“Currently, commodity prices still expected to remain constant. Particularly import prices and our trading partners in economy forecast in a better growth rate.
“Over the month, consumer prices rose by 0.2 percent in September for the third consecutive month underpinned by higher prices of alcoholic beverages, tobacco and narcotics.”
Commenting on the inflation, Mrs Waqabaca said inflation in September was recorded at two per cent, slightly higher than the 1.9 per cent recorded in August and from 5.6 percent recorded in September last year.
“Inflation in the near term is expected to be around 2.5 per cent.”
Mrs Waqabaca emphasised on the shortage of foods market items and kava and the increase in prices mainly due to shortage of supply after the cyclone. “It has held up prices, Kava in particular showed sharp increase and has remained relatively high.
“Our economy is vulnerable to natural disaster and it continues to lower our current performance and growth, and this is an issue we need to address,” she says. But overall, Mrs Waqabaca says they are seeing a recovery in the economic growth rate.
$1,944 billion was the highest Foreign Reserve recorded in 2015