Fiji’s sectoral performance weak still

December 07, 2007 05:57:37 PM

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Fiji’s sectoral performances have remained weak in the past months with little sign of recovery in the remaining months of 2007, says the Reserve Bank of Fiji.

For the tourism industry in particular, visitor arrivals remain weak compared to levels a year ago, the RBF states in its November economic review out today.

It says that consumer demand continues to wane as evident in lower value added tax collections and reduced imports of consumer goods.

Remittance levels were also weak cumulative to September, lower by 30 per cent over a year ago.

The RBF says total government expenditure for this year is estimated to decline.

In the 2008 National Budget, Government’s cash flow indicates a fiscal surplus of $22.4 million will be achieved this year, equivalent to 0.4 per cent of GDP.

This outcome is expected to be underpinned by an estimated 14.2 per cent annual decline in expenditure and a 2.0 per cent annual decline in revenue.

The economy is now expected to contract by 3.9 per cent this year compared with the 3.1 per cent decline anticipated earlier.

Looking ahead, for 2008 the economy is expected to recover with a growth of 2.2 per cent.

This projection is also in line with government expenditure expected for next year.

In the 2008 National Budget, government expenditure is expected to increase by 19.4 per cent, which is anticipated to more than offset the 8.1 per cent projected increase in annual revenue.

The fiscal deficit for next year is projected at 2.0 per cent of GDP.

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