Economic review Broad-base decline across all sectors except mining, quarry

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FIJI’s economic activity started to pick up from the last quarter of 2021, this according to the Reserve Bank of Fiji economic review for the month of December, 2021.

This was because of the ease of mobility restrictions and international borders reopening from December 1 that would lead to an increase in the demand for labour which is expected to pick up gradually.

“As per the RBF Job Advertisement Survey in the year to November 2021, it was stated the number of jobs advertised declined by 37.9 per cent compared to a higher contraction of 65.7 per cent noted in the corresponding period in 2020,” stated the review.

It was highlighted that there was a broad-base decline noted across all sectors with the exception of the mining and quarrying sector.

“Major sectoral production continued to show improved results although still below the pre-pandemic level,” stated the review.

“Output in the timber industry remained firm in the year to November, 2021.”

It was stated the annual production of pine log (+33.7 per cent) and woodchip (+34.6 per cent) increased, while sawn timber remained unchanged.

Mahogany (+97 per cent) output also progressed as a result of favourable weather which led to the accumulation of log stockpile, according to the review.

“In addition, improved mining efficiency supported the annually higher output of gold (+6.8 per cent). In contrast, electricity generated (-5.3 per cent) continued to note annual decline in the year to November while both cane (-18 per cent) and sugar (-12.1 per cent) production declined in the 2021 crushing season.”

Aggregate demand also started to pick up according to the review, as reflected by improvements noted in partial indicators of consumption and investment spending.

“In the year to November, 2021, new credit for consumption purposes (+13.1 per cent) rose on an annual basis driven by higher lending to the wholesale, retail, hotels and restaurant category.

“Similarly, new vehicle sales (+12.3 per cent) increased over the same period while new (+4.8 per cent) and second-hand (+86.7 per cent) vehicle registrations also logged growth in the year to October. In contrast, monthly growth in net value added tax (VAT) collections (-4.8 per cent) moved into negative territory in November, after recording gains for two straight months owing to higher VAT refunds.”