Recent data suggests a pickup in consumer spending and increased exports of gold, fish and timber over the last five months of the year when compared to the same period last year.

The Reserve Bank of Fiji's Economic review for the month of August also highlights the consumer spending rose modestly supported by improved labour market conditions.

It said data on jobs advertised also indicate that hiring intentions are gradually improving and that remittances rose on an annual basis by 16.4 percent to $144 million during the first six months of the year.

And while the RBF said that investments remain low, investments are expected to pick up over the next 6 - 12 months in line with positive sentiments in the Business Expectations Survey.

The RBF also expected increased tourism activity with the recent reintroduction of Air Pacific's Nausori/Auckland flights twice a week and the added Sydney/Nadi daily service.

And while most sectors are performing well, the RBF said on the downside, cane production increased only marginally while sugar production fell by 8 percent during the first two months of 2010 crushing season when compared with the same period last year.

As at August 31st, foreign exchange reserves were around $1.186 billion, equivalent to around 3.7 months of imports of goods and non factor services.


Story by: Roneel Lal