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Declining export earnings is still a concern for Fiji, as revealed by the Reserve Bank of Fiji’s May economic review today.
RBF said imports had fallen, which it said was encouraging, but there was still a worry over Fiji’s export situation.
“While the recent devaluation favours a rise in export earnings in the future, the falling global demand and supply-side constraints is still a concern,” it said.
“Domestic exports fell by 12 percent in the first quarter, compared to a 21.7 percent growth in the same period in 2008.
Merchandise import payments marginally fell by around 0.2 percent in March 2009, compared to 11 percent growth in the same period in 2008.”
Payments, it said rose for consumption goods (21.6 percent) and investment goods (11.4 percent), while a decline was noted in imports of intermediate goods (-28.7 percent), a result of lower fuel prices.”
The trade deficit worsened by nine percent in the first quarter of this year, compared to the same period in 2008, when it widened by $417.6 million.
Personal remittances remained stagnant at around $59 million, the same level recorded in the
corresponding period last year.
RBF said growth in export earnings were noted for gold, fish, forestry and copra while garment and mineral water earnings were weak.
“Global economic conditions continue to affect visitor arrivals although the devaluation is expected to make Fiji a more competitive destination in the months ahead,” it said.
Fiji’s foreign reserves stood at $650 million at the end of April while liquidity had improved at $168.5 million.
