Fiji economy, has in the recent times declined by 3.9 per cent. But still it is expected to recover and expand by 2.2% in 2008. Economic growth is expected to be wide-ranging across most sectors leaving out finance, insurance, real estate and business services.
Statistics of Fijian economy states that total merchandise exports was $2,890.1 million in year 2007. Domestic exports stood up to $828.8 million and total exports were $1,209.8 million. There was a total growth of 7.5 percent, with growth in domestic exports decreased decreasing by 0.7 percent and re-exports increased by 3.7 percent.
Diversification in the Fiji economy has led the economy to survive evenhanded shocks. Since there was a recession in the tourism sector, which was one of the significant sectors of Fiji economy, the government introduced new concession by exempting tax on hotel owner’s profit and also introduced a range of incentives. These incentives were intended to increase investment in tourism and so this sector was again revived as a priority sector.
Manufacturing sector of economy of Fiji is export oriented and government have encouraged various taxation concessions in this sector. This sector includes industries like garments and footwear along with concrete, cement and other building materials, which are mainly export oriented. For domestic market this sector includes industries manufacturing furniture, foods including alcoholic drinks and other household goods.
Fijian economy is mainly made of private enterprise along with government rights of service utilities like the national airline Air Pacific, and the Fiji Sugar Corporation Limited. Government of Fiji has taken steps to deregulate the economy; restrained government expenditure and reformed taxation system were two major steps. The main emphasis of the government was to put country's resources in making competent domestic production and export-oriented production.
Inflation was 2.8 percent in the recent time, which was 0.7 percent lower than the previous times. Inflation led to rise in consumer prices of food, durable household goods, miscellaneous things, alcoholic drinks & tobacco and transport. Growth in the money and credit aggregates raised at a substantial rate in the recent years. There was a growth of 25.2 percent in broad money and private sector credit increased by 16.8 percent. Fiji economy is in developing state and has great prospects that it will prosper in the nearest future.