Fiji’s merchandise commerce stability weakened by 77.7 per cent to $458.9 million within the yr to September, as greater home demand and rising import costs led the annual development in imports (55.8 per cent) rising extra sharply than the 27 per cent development in exports.
In response to the Reserve Financial institution of Fiji’s December financial assessment annual inflation which has continued above 5.0 per cent since Might 2022 moderated to five.2 per cent in November from 5.4 per cent within the earlier month however nonetheless greater than the 1.5 per cent a yr in the past.
It stated greater meals and gas costs had been the main contributors to the inflation consequence over the yr, each of which represent a big share of imported inflation which stood at 8.0 per cent relative to home inflation of 4.4 per cent.
On a month-to-month foundation, inflation declined for the third consecutive month to -0.2 per cent.
The RBF stated the extent of overseas reserves had been snug at $3,426.3m, ample to cowl 6.9 months of retained import cowl, underpinned by greater tourism receipts, inward remittances and Authorities mortgage drawdown, including that overseas reserves had been anticipated to stay secure within the close to to medium time period.
When it comes to dangers to the outlook, the central financial institution stated dangers primarily emanate from the exterior entrance.
“Additional USD tightening, cross border tensions and extra frequent commodity worth shocks pose acute challenges to the worldwide development outlook. Domestically, pure disasters significantly throughout Fiji’s cyclone season might weigh considerably on financial outcomes,” it stated.