The Reserve Bank of Fiji in its latest economic review has stated that while the country’s growth outlook remains positive, weak primary sector outcomes and soft consumption and investment activity are likely to weigh on our growth projection for this year.

In the year to April, pinewood supply, woodchips, sawn timber, mahogany, and mineral water production fell.

On a positive note, total gold increased by 50.2 percent attributed to improvements in production by both Vatukoula Gold Mine Limited and Tuvatu Gold Mine.

The RBF states that on the global front, economic uncertainties persist with several downside risks including heightened geopolitical tensions, rising commodity prices and uneven growth amongst trading partners.

It says domestically, the proposed increase in the minimum wage rate, if not supported by increased productivity, will potentially raise input costs for businesses and soften economic activity while impeding on hiring intentions, work hours, and the adoption of unethical labour practices.

Furthermore, the RBF states that a decline in the working-age population due to higher emigration will have negative implications for domestic demand in the economy.

In the year to April, the total number of jobs advertised grew by 8.7 percent to 5,351 vacancies from the 23.6 percent increase noted in the same period last year.

Wage levels have increased based on monitored indicators and as per the RBF’s recent Business Expectations Survey.

The RBF states that the inherent risk of natural disasters and climate change remains.

As reported earlier, Fiji’s annual headline inflation reached a decade-high of 7.1 percent in April, much higher than the 4.6 percent from the previous month and 1.4 percent in the same period a year ago.