Economic Analysis - Growth Recovery Remains On Track - MAY 2017
BMI View: We expect the Fiji economy to benefit from continued investment in infrastructure amid rebuilding efforts following the devastating cyclones in 2016, a recovery in gold prices, and ongoing attempts to support the tourism sector. We therefore maintain our forecast for real GDP growth in Fiji to come in at 3.5% in 2017 versus an estimated 2.5% in 2016.
We view the Fijian government's continued investment in the infrastructure sector as a key engine of growth in the island-nation in 2017 as the country continues to rebuild following the destruction caused by Cyclones Winston and Zena in 2016. The recovery in gold prices will be supportive of the mining sector, while ongoing efforts to boost tourist arrivals are expected to reap results over the coming months. In view of this, we maintain our forecast for real GDP growth in Fiji to come in at 3.5% in 2017 versus an estimated 2.5% in 2016.
Infrastructure To Remain As Key Growth Engine