Globally, there is growing evidence that the world economy is slowing, underpinned by the repercussions of the United States (US) sub-prime mortgage crisis, as well as soaring crude oil and commodity prices. World economic growth is projected at 3.7 percent this year, compared to 4.9 percent in 2007. In addition, key macroeconomic data indicate an economic slowdown for all our major trading partners.
For Fiji, the economy is anticipated to rebound and grow by 1.7 percent this year from a contraction of 4.4 percent last year. Current economic conditions continue to be weak. Investment is generally subdued, with low private business sentiment, manifesting in sluggish labour market conditions. Consequently, consumer spending is restrained.