26 Jul 2019

Fiji's growth to moderate amid global economic slowdown: RBF

12:43 pm on 26 July 2019

The Reserve Bank of Fiji says a slowdown in consumer spending in the country is consistent with the lower global growth forecast for this year.

Fiji money

Fiji money Photo: RNZ Pacific

Governor Ariff Ali said domestic demand did grow recently but at a slower pace thanks to higher remittances, tourism earnings and private sector credit growth.

The International Monetary Fund in its July update of the world economic outlook has lowered growth this year to 3.2 percent.

The IMF's leading global indicators point to a slowdown in economic activity due to the trade dispute between China and the United States.

Mr Ali said the general rise in protectionism has also affected Fiji's major trading partners.

He said despite the uncertainty in the world's economic environment, Fiji's commercial banks' liquidity increased to $US202million at the end of June and continued to grow this week to over $US226million.