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The Reserve Bank of Fiji (RBF) continues to maintain its outlook of an improving Fiji economy with its latest monthly economic review pointing to improved labour market conditions.
The RBF’s August economic review said that taxpayer registrations rose yearly by 46 percent for the period cumulative to July indicating some new additions to the labour force.
There was no comparative data however for the previous corresponding period.
The RBF also said that recent data on jobs advertised show that hiring intentions are gradually improving.
The improved labour market conditions were one of the factors supporting rising consumer spending which the RBF pointed out was “albeit at a modest pace”.
The other factors were higher incomes and increased lending.
Net Value Added Tax (VAT) collections rose annually by 6.5 percent in the first half of the year.
The central bank said that lending for consumption purposes rose by 3.5 percent in the year to July.
Remittances also rose annually by 16.4 percent to $144 million during the first six months of this year.
On the other hand, partial indicators for investment showed that investment generally remains low.
“Imports of investment goods fell by 5.6 percent in the year to May while investment lending by commercial banks picked up in July, rising over the year by 8.3 percent.
“Nonetheless, investment is expected to pick-up over the next 6-12 months in line with positive sentiments in the Business Expectations Survey.”
By Richard Naidu
