FIJI ECONOMY CONTRACTS 4 PERCENT IN 2007

PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i

FIJI ECONOMY CONTRACTS 4 PERCENT IN 2007
Lower than expected sugar output hurt

SUVA, Fiji (Fijilive, April 21, 2008) - Fiji’s economy was estimated to have contracted by 4.4 percent in 2007, compared to the 3.9 percent decline forecast in October last year -- according to the Reserve Bank of Fiji.

The downward revision was mainly a result of lower than expected cane and sugar output, which was affected by adverse weather conditions and mill interruptions, said Savenaca Narube, the chairman of the Macroeconomic Policy Committee and RBF governor.

The performance of the building and construction sector was also weaker than earlier envisaged.

Last year’s contraction was almost broad-based with electricity and water the only sector estimated to have grown, he noted.

Leading the decline in the economy were the building and construction and community, personal and social services and manufacturing sectors.

The absence of mining in 2007 reduced economic growth by around half a percentage point, Narube said.

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