Increased demand due to more investment and high consumption
Demand in Fiji is on the increase according to the Central Bank. An Economic Review by Reserve Bank of Fiji (RBF) found that investment activities and high consumption in the country increased demand levels.
Review report also showed increased disposable incomes, favorable market and labor conditions and inward remittance. According to Central Bank, these factors were the primary pushers of consumption and investments in the country. Within the first eleven months of 2017, loans offered for use rather than paying off debts had increased. This was attributed to steady growth in retail, wholesale and service industries such as restaurants and hotels.
Additionally, showing increased RBF lending to commercial banks in November, the Central Bank reported that investors reaped better results from investments. This was associated with the fact that a huge percent of commercial bank loans had gone into building, construction and real estate sectors. Consequently, there was a decrease in sales of domestic cement due to a production slowdown. The Central Bank, however, forecasts positive growth of investments moving forward. This is due to the continuation of rehabilitating Tropical Cyclone Winston and new projects from the private sector.
RBF also reported improved conditions for the labor market. In its Job Advertisement Survey, increased opportunities in labor market were noted in various sectors. Such included hotels and restaurants, construction, real estate, business service industry and insurance. There was also increased labor market in retail and wholesale areas. An annual cumulative increase in vacancies advertised throughout the year was reported in November 2017. With a good performance noted in the domestic economy, the employment sector is expected to continue growing in coming years.