Banks’ expectations

Reserve Bank of Fiji. Picture: ELIKI NUKUTABU

The Reserve Bank of Fiji expects investment decisions to firm up once tax and fiscal policies are announced in the upcoming National Budget.

In its May economic review the RBF said financial conditions continued to support economic recovery amidst sufficient $2.3 billion liquidity.

As a result outstanding lending rates remain at historic low levels with private sector credit noting continuous growth in the year to April (5.7 per cent).

According to the review the steady yet modest recovery in construction and investment activities continued, evident in the 25.1 per cent pickup in new investment lending both to the real estate and building & construction sectors in the year to April.

It however said in the same period, domestic cement sales shrunk by 1.0 per cent mainly because of the lower demand.

Nonetheless, the recent reduction in domestic cement sale prices should augur well for construction activities in the months ahead.

The RBF recently announced that 8.0 per cent upward revised GDP figures from the earlier 6.0 per cent projected in November 2022.

This is largely underpinned by the faster than anticipated recovery of the tourism industry, and its positive spill over into other sectors of the economy.

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