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Fiji’s merchandise trade deficit cumulative to May narrowed significantly by around 13 percent to $597 million, the Reserve Bank of Fiji said in its August economic review.
Domestic export earnings grew by 14.7 percent attributed to higher exports of mineral water, timber, gold, fish and other domestic exports which the bank said more-than-offset declines in sugar, molasses, coconut oil and yaqona receipts.
Including re-exports, total export earnings rose by 20.6 percent.
The RBF said import payments fell marginally by 0.3 percent, led by lower payments for investment goods which fell by 1.7 percent underpinned by lower imports of machinery and transport equipment. This was partially offset by increases in intermediate (1.2 percent) and consumption goods (0.2 percent).
As at August 31, 2010, foreign exchange reserves were around $1.186 billion, equivalent to around 3.7 months of imports of goods and non-factor services.
The bank noted other positive economic trends including increased consumer spending, Value Added Tax collections, improved labour market conditions and increased lending.
By Richard Naidu
