The projected economic growth for 2008 has been revised downwards due to lower than expected performance in several sectors.

The Governor of the Reserve Bank of Fiji Savenaca Narube confirmed that economic growth for this year is now projected at 1.7%, down from 2.2% announced in October last year.

Narube said the downward revision is mainly due to the lower projections for the community, social and personal service sector. He said lower crop, cane and sugar output, partly due to Tropical Cyclone Gene, also led to lower revisions for the manufacturing and agriculture, forestry and subsistence sectors.

The RBF Governor said the downward revisions could not offset the higher projection in the mining sector as gold output is included in the new 2008 forecast and also included is the projected higher visitor arrivals, which is expected to have a positive impact on the hotels and restaurants and transport industries.

Narube revealed that while economic recovery is still expected in the next two years, it will be lower than earlier projected and they now expect the economy to grow by 1.1% in 2009 and 1.6% in 2010.

Latest statistics also show that exports are expected to expand by 7.7% and Narube said while this is encouraging, in absolute dollar terms, the growth in imports by 4.6% is expected to outpace exports. Narube said inflation at the end of the first quarter was 7.5% and while the year end inflation is projected at 5%, the figure would be revised upwards.