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Spending more than we earn

$392m deficit

Geraldine Panapasa
Tuesday, July 15, 2014

PROVISIONAL data for Fiji’s balance of payments for the March quarter of this year showed a current and capital account deficit of $392.7million.

The statistical record of economic transactions between Fiji and the rest of the world also placed the country’s financial account deficit at $302.1m.

In an update of the flow of money into and out of the country for the March quarter 2014, government statistician Epeli Waqavonovono said the current account balance for the March quarter of 2014 showed a net outflow of $393.9m, a slight decrease when compared with the $416m net outflow in the corresponding quarter last year.

“Net goods deficit improved by $114.3m from $665.7m to $551.4m, largely because of a decrease in the imports of machinery, transport equipment and leased aircraft,” he said.

“Net services surplus increased by $22.7m from $222.7m to $245.4m, largely due to an increase in tourism earnings.

In terms of net primary income deficit, he said, this increased by $117.2m from $69.8m to $187m because of an increase in reinvested earnings.

Mr Waqavonovono said net secondary income surplus increased by $2.3m from $96.8m to $99.1m and attributed to an increase in personal transfers.

For Fiji’s capital account, which tracked the flow of aid and grants either in cash or kind for projects such as capital development and equipment purchases, Mr Waqavonovono said a net inflow of $1.2m was recorded during the review period.

He said this was a slight decrease of $0.1m from the $1.3m figure recorded a year earlier.

“In terms of Fiji’s financial account, which describes the change in ownership of international assets and liabilities, a net borrowing of $302.1m was recorded in the March quarter,” he said.

“This consisted of net outflows of $285.4m in equity and net inflows of $16.7m in debts.


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