[New post] Research shows Fiji is on a promising path to recovery
bayshorefiji posted: " Fiji's Gross Domestic Product is predicted to surge next year. This has been stated by two senior international economist at the ANZ Bank in a research paper titled "Pacific Outlook – Fiji". The authors say this is due to Fiji's successful vacc"
Fiji's Gross Domestic Product is predicted to surge next year.
This has been stated by two senior international economist at the ANZ Bank in a research paper titled "Pacific Outlook – Fiji".
The authors say this is due to Fiji's successful vaccination campaign, internationally recognised COVID-19 safety protocols for travel and in-country tourism operators plus competitive high value tourism packages have unlocked the pent-up demand for a Fiji holiday.
The research paper also states Fiji should expect a tourism boom with the international borders re-opening in December.
Their expectation is that tourism will boom over 2022 and 2023 lifting growth by 23.2 percent next year and 5.4 percent in 2023.
It says the RBF is not expected to raise the policy rate next year as underlying inflation will remain contained and foreign reserves will retain a comfortable buffer.
However, the current all-time high level of banking system liquidity is unlikely to be sustained.
The research paper also states that an improving economy should see liquidity retreat from present record levels and this may put upward pressure on interest rates from late 2022.
The main uncertainty for Fiji relates to the pace of immunisation for children and booster shots.
The research paper states that it will be important for Fiji to secure enough vaccine early to be able to complete the booster rollout and immunise children in a timely manner.
By doing so, Fiji will put itself in a strong position to maintain the health and wellbeing of Fijians, freedom of movement and an open economy.
WordPress.com
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