Australasia & South Pacific

Monthly political risk, economic forecasts and business environment analysis on each country market

Latest Australasia & South Pacific Analysis

Economic Analysis - Budget Aimed At Retaining Support Ahead Of Elections - OCT 2017

The Fijian government's FY2017/18 (July-August) appears to be an election budget aimed at the parliamentary elections that will be held in 2018 with tax cuts and increased spending on education and the sugar sector. While increased investment in infrastructure will be positive for development over the longer term, the government's efforts to raise revenue appear to be limited. We thus believe...

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Economic Analysis - RBF To Remain Accommodative To Support Fiscal Initiatives - SEPT 2017

The RBF held its Overnight Policy Rate at 0.5% during its June monetary policy meeting amid a stable economic outlook. With inflation likely to remain manageable and the central bank likely to seek to support the government's expansionary budget, it is unlikely that the RBF will hike rates in 2017. As such, we have pared back our forecasts and now expect the central bank to remain on hold...

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Economic Analysis - Recovering Mining Sector Positive For Growth - AUG 2017

The gradual recovery in aluminium and gold prices will be supportive of Fiji's mining industry, while the development of a new port aimed at improving the export of iron sand will be positive for the infrastructure sector and help to grow the island's mining industry. We therefore maintain our view for real GDP growth in Fiji to pick up to 3.5% in 2017 from an estimated 2.5% in 2016.

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