The Reserve Bank of Fiji’s latest economic review noted an increase in real estate investment credit for the month ending June.
“Over the month to May, new bank investment related credit was higher by 23.1 percent due to increases in the real estate (13.2 percent) and building and construction (33.12 percent) sectors.”
Cement sales in the domestic market noted an annual growth of 8.6 percent in the year to May, closely correlating with the rise in construction-related investment activities, the review noted.
The RBF’s Job Advertisement survey revealed strong recruitment intentions in construction sectors, with 820 vacancies, which it partly attributed to post-Tropical Cyclone Winston reconstruction and rehabilitation activities, as well as from the impacts of the April floods and Tropical Cyclone Zena.
“The annual growth in private sector credit slowed to 11.4 percent in May from 12.4 percent in April, largely driven by the lower outturn in commercial banks’ lending to the private sector (11.3 percent from 12.5 percent).
“Lending rated remained historically low in spite of the monthly increased noted in both the commercial banks’ weighted average outstanding and new lending rates in May.”
The economic review noted that in the same month, funding costs by commercial banks rose for the third consecutive month, with increases in the savings, as well as existing and new time deposit rates.