Economy

Fiji’s economy is anticipated to make a modest recovery of 1.8 percent in 2010. The growth is expected to be led by the manufacturing, agriculture & forestry, financial intermediation, wholesale & retail trade, hotels & restaurants, construction, mining & quarrying, real estate, fishing and other community, social & personal services sectors. The positive outlook for Fiji’s economy is supported by the economic recovery in selected trading partner countries, with an expected pick up in export demand and higher visitor arrivals.

 

A positive outlook is expected for the tourism industry in 2010, based on improvements in visitor numbers in the latter half of 2009 and supported by the introduction of new airlines and routes, discounted package deals, active promotions, campaigns and advertising by Tourism Fiji.

 

On merchandise trade, Fiji’s total exports in 2009, was $1, 230 million whilst total imports were $2,807 million. Compared to the corresponding months of 2008, total exports fell by 19.6 percent due to lower receipts from re-exports of mineral fuels and low earnings from sugar, mineral water, woodchips, garments, uncooked pasta, flour, and taro. However, in 2010, exports are projected to grow by 8.9 percent driven by high earnings anticipated from re-exports, gold and fish. The rebound is also consistent with the recovery of external demand as global economy recovers.

Total imports on the other hand decreased by 28.3 percent compared to performance in 2008 due to decline in imports of mineral fuels, machinery & transport equipment, chemicals and allied products. In 2010, imports are projected to rise by 11 percent, led mainly by higher payments for mineral fuels, machinery & transport equipment, food and manufactured goods. Public capital projects are also expected to drive the imports of machinery & transport equipment.  

 

As at 31st August 2010, foreign exchange reserves were around $1,186 million, equivalent to around 3.7 months of imports of goods and non-factor services.

 

Increasing our exports and investment levels are critical areas which Government is focusing its efforts on. The attractive incentives provided for in the 2009 National Budget by Government is done with the objective of raising exports.