31 Mar 2004

Fiji Reserve Bank urges more investment

11:31 am on 31 March 2004

The Reserve Bank of Fiji has warned that economic growth is dangerously dependent on domestic spending and needs more investment.

The Fiji Times quotes the bank's deputy director, Sada Reddy, as saying that since 1985, 85-percent of the gross domestic product has been due to consumption with investment accounting for only 14-percent and net trade another 1-percent.

He says consumption does not contribute to economic growth except for that one particular purchase.

But Sada Reddy says investment in shopping malls, bridges, roads and factories increases economic growth in the long term.

He has urged the various arms of government to stimulate investment.