Fiji's GDP expected to grow 8.2 pct this year: central bank

SUVA, Nov. 22 (Xinhua) -- The Reserve Bank of Fiji (RBF), the country's central bank, said the post-pandemic economic recovery in the Pacific island country is complete as the economy has returned to the 2019 level of gross domestic product (GDP).

According to a press release of the central bank on Wednesday, Fiji's economy is projected to expand by 8.2 percent this year, up from the 8.0 percent growth expected earlier.

The upward revision reflects the exceptional recovery in the tourism industry up to October this year with more than 770,000 tourists, around 3 percent higher than the same period in 2019, the bank said, adding that by the end of this year, visitor arrivals are expected to be 4 percent higher than 2019.

The RBF said the spillover of higher tourist arrivals increased consumption spending and boosted aggregate demand. Investment spending has also been rising, although at a relatively gradual pace.

However, it said the natural resource sectors continued to show dismal performance and have been a drag on growth. Sugar, mineral water, gold and the forestry sector outputs noted annual contractions so far into the year due to industry-specific supply side issues.

Over the medium term, economic growth is expected to return to trend. The services and industrial sectors are expected to be the leading drivers of growth while the primary sectors are expected to remain broadly flat, according to the RBF.

It also said that over the medium to long term, higher-than-trend growth is required to compensate for the lost economic outputs in 2020-21 and to rebuild fiscal buffers for future economic shocks.