Three Fiji sectors boost exports

May 20, 2009 07:21:16 PM

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Three of Fiji’s minor sectors - gold, copra and electricity production, boosted the island nation’s domestic exports up to April this year, the Reserve Bank of Fiji reports.

Gold production upped during the month to 9718 ounces compared to nil in the same period last year.

The copra industry and electricity production also noted positive results.

The RBF in its economic review for the month ended April 2009 also reported weak tourist arrivals to Fiji in the first three months.

And RBF is banking on the recent 20 per cent devaluation of the Fiji dollar to turn Fiji into an attractive holiday destination in the coming months.

On exports, the central bank recorded a 26.5 per cent drop in domestic exports in the first two months of the year, compared to a 3.6 per cent growth in the same period in 2008.

“The lower domestic exports was mainly underpinned by lower receipts from sugar, mineral water, garments and fish, which more than offset the gains from gold, sweet biscuits, coconut oil and timber exports,” the RBF said.

The review also reported that merchandise import payments rose by around 2.3 per cent cumulative to February 2009, compared with a 16.2 per cent growth in the corresponding period last year.

“As a result of the 20 per cent devaluation, export receipts are expected to rise, but are expected to slow down as demand for some imported goods and services start to fall and import substitution begins to take effect,” it said.