The trade deficit continues to widen and stood at $454.4 million in the first quarter of the year compared to the same period last year.

The Reserve Bank of Fiji (RBF) said while a fall in imports is encouraging, the decline in exports remains a concern and while the recent devaluation favours a rise in export earnings in future, the falling demand and supply side constraints is still a concern.

The RBF said domestic exports fell by 12 percent in the first quarter compared to 21.7 for the same period last year.

The Bank said the global economic conditions continue to affect visitor arrivals although the devaluation is expected to make Fiji a more competitive destination in the months.

Statistics also show that the labour market conditions remain subdued and cumulative to April 2,600 employees were registered as new tax payers with FIRCA compared to 5,600 during the same period in 2008.

The RBF said inflation rate rose from 0.3 percent in April to 0.8% in May mainly driven by higher food prices and following the devaluation prices of most goods and services is expected to rise in the coming months.

As at June 16th, foreign reserves stood at $650 million.