Latest figures released by the Reserve Bank of Fiji confirm that the poor performance in major sectors continue to retard economic growth as we head into the third month of 2008.

In its Economic Review for February, the RBF reveals that while the economy is still projected to grow by 2.2 percent this year, which is expected to be revised downwards as the full impact on economic growth by Tropical Cyclone Gene is yet to be ascertained.

The Bank also confirms that the decade high inflation rate which stands at 7.4 percent is due to soaring oil and food prices, rise in bus and taxi fares and the increase in the FEA fuel surcharge.

In addition, the RBF said with a decrease in investment in 2007, business surveys and industry meetings show that the weak economic performance and the current political climate continue to hinder investment decisions.

Figures also confirm that employment opportunities remain weak in some sectors however some improvements are expected in the months ahead in the labour market in the next twelve months.

There are some positive signs as the Fiji Visitors Bureau has revised upwards its visitor arrival targets for 2008 from the 545,000 forecast earlier to 570,000 as some traditional markets are showing improvement.

The bank said foreign reserves at the end of January stood at $944 million, sufficient to cover 4 months of imports.