Fijian Economy

Fijian Economy  | read this item

Fijian economy can be characterized by a general decline by 3.9 per cent. But there are expectations that it would be 2.2 per cent expand in 2008. On the whole, not mentioning finance, insurance, real estate and business services, economic growth is supposed to be wide-ranging.
Total goods exports were $2,890.1 million in 2007. Domestic exports took over $ 828.8million there; the rest– $1,209.8 million conferred to total exports.

There we could see the total growth of 7.5 per cent; 0.7 per cent decrease in domestic exports and 3.7 per cent increase in re-exports.

Tourism sector, being the most prominent source of income for Fiji, has suffered a certain recession. After that new rules on tax payments were introduced by the government. Hotel owners were liberated from taxes and certain system of bonuses was established. The total aim of all these measures was to stimulate the growth of investment in tourism business. Thanks to it, this part of country’s wealth has survived.

Also government offered certain tax reliefs for manufacturers. This part of economy is presented by garments and footwear industries, and building materials production (concrete, cement). All these goods are used for export mainly. The group of goods that are oriented on domestic consumption, includes furniture, food and alcoholic drinks, household goods.

Fijian economy is based on private enterprises, while there are several government-ruled services (e.g. National airline Air Pacific, and Fiji Sugar Corporation Ltd.). Fijian government undertook several measures to improve the situation. The major task here concerns taxes. The government wanted the country’s resources to be widely used in producing domestic goods and be oriented on export as well.

Inflation went to the mark of 2.8 per cent. This rate is lower than the previous one. As the result of inflation, consumer prices have risen. It touched upon food, alcoholic drinks, tobacco, and transport. The total sum of credit and money growth raised in recent years. Broad money constitute the growth of 25.2 per cent and credits for private sector increased by 16.8 percent.
Fijian economy is now developing and has all possibilities for prosperity in future.

Topics: alcoholic drinks, business, cent, concrete cement, corporation ltd, domestic consumption, domestic exports, economic growth, economy, Fiji, Fijian, finance insurance, footwear industries, government, growth, materials production, money, national airline, Pacific, private enterprises, Recession, tax payments, tax reliefs, Tourism, tourism business, tourism sector