Fiji's Revised Economic Projections: May 2010

The Reserve Bank of Fiji recently announced the Revised Economic Projects for 2010. The domestic economy is now forecast to expand by 1.8 per cent in 2010 compared with the 1.9 per cent growth announced in November last year. The revision is largely due to Cyclone Tomas earlier this year which greatly affected agriculture in the northen division and eastern marine areas.

Growth for 2009 has also been revised to a 2.2 per cent decline from the forecast 2.5 per cent announced in November last year. The improvement is due mainly to betther than expected performances in the transport & communication, wholesale & retail trade, public administration & defence, health & social work, education, manufacturing, real estate, other community, social personal services, mining & quarrying, electricity & water and financial intermediation sectors.

Real GDP growth projections for 2011 and 2012 have been revised downwards to 1.7 percent (from 2.4 percent) in 2011 and 1.9 percent (from 2.5 percent) in 2012. The 2 downward revisions for both years mainly arise from forecast weaker performances in the manufacturing, transport & communication, construction, wholesale & retail trade, real estate and other community, social & personal services sectors.

(Source: Reserve Bank of Fiji: May 2010)