Press Release No 11 – Revised Economic Projections
Press Release No. : 11/2011
Date : 28 April 2011
The Chairman of the Macroeconomic Policy Committee and Acting Governor of the Reserve Bank of Fiji, Mr Barry Whiteside announced that “Following a detailed review of all relevant data and available information, the domestic economy is now forecast to expand by 2.7 percent this year. This compares with the 1.3 percent growth previously announced in November last year.
Revised Government allocations in the 2011 National Budget underpin the better-than-previously envisaged projections for the education; public administration & defense; and construction sectors. In addition, the fishing; real estate & business services; financial intermediation; health & social work; transport; storage & communication; hotels & restaurants; electricity & water and the other community, social & personal service activities sectors are expected to do better than earlier anticipated. In terms of drivers of growth, the agriculture & forestry; manufacturing and fishing sectors will provide the major impetus to the 2.7 percent growth for this year, while moderate contributions are expected from the hotels & restaurants; real estate & business services and the financial intermediation sectors”.
The Chairman highlighted that “while the 2.7 percent growth projection is higher than previous expectations, total output has only returned to 2008 levels, and is still below the 2006 mark. In addition, for certain major industries – in particular, sugar and fishing, the higher 2011 growth expectations are largely base-related.