Tourism to boost growth in 2008: Chaudhry
Tuesday August 28, 2007

Fiji's economy is expected to decline further this year, but will be boosted in 2008 by the expected growth in Tourism, says interim Finance Minister Mahendra Chaudhry.

While briefing Cabinet today on Government finances for the first six months of 2007, Chaudhry Chaudhry said the economy is now projected to grow by 1.9 per cent next year.

"Also, the finance, real estate and business services; wholesale and retail trade and hotels and restaurants and transport and communication sectors are expected to lead growth next year."



Chaudhry however said that the economy is projected to contract by 3.1 per cent this year, compared to the 2.5 per cent economic decline earlier forecasted in February.



"All sectors, except manufacturing and mining, are envisaged to record lower-than-expected performances, which have resulted in the relatively larger economic contraction.



"Lower spending for the community, social and personal services sector, which is measured by the Government operating expenditure, and the stalling of certain major projects, are the major contributors to this year's economic decline."



Chaudhry adds that the provisional data from the Bureau Of Statistics indicated that cumulative to June, visitor arrivals totalled almost 240,000, a decline of 5.1 per cent when compared to the same period last year.

He said that the on-going discounts provided by hoteliers will have a flow-on effect in the wholesale and retail trade and hotels and restaurants and transport and communication sectors.

On a positive side though, Chaudhry said that finance, insurance, real estate and business services, manufacturing, agriculture, forestry, fisheries and subsistence, electricity and water sectors are anticipated to contribute positively to growth in 2007, although at a level lower than previously estimated.