Economic Analysis - Remaining Positive On Growth - DEC 2017
BMI View: We continue to hold a positive outlook on Fiji ' s economic growth and forecast real GDP to grow by 3.5% in 2017 and 3.2% in 2018. This will be largely driven by an increase in gold prices, boding well for gold production in the island-nation, an increase in sugar production, and continued investment in infrastructure as part of the government's budget initiatives.
Fiji's economic outlook is likely to remain positive as the country continues to rebuild following the devastation wrecked by Cyclones Zena and Winston in 2016. With international gold prices picking up, we believe that the gold mining sector will support growth amid positive drill results from the Tuvatu Gold Project. Government initiatives and an improvement in the weather will be positive for the sugar sector in terms of production and raising the sector's productivity. Lastly, continued investment in infrastructure as part of the government's FY2017/18 (July-August) budget initiatives will be remain a key driver of growth. We thus maintain our real GDP growth forecast for 2017 and 2018 at 3.5% and 3.2%, respectively.
Higher Gold Prices To Support Mining Activity