#header-inner img {margin: 0 auto !important; #header-inner {text-align: Center ;} Fiji Coupfourpointfive: Reddy's rosy outlook misleading

Wednesday, September 16, 2009

Reddy's rosy outlook misleading

The interim regime appointed Reserve Bank of Fiji Governor Sada Reddy has told Radio Fiji that the nation will enjoy a modest economic recovery of 2% in 2010 as global economies come out of recession.

Reddy also says foreign reserves worth $980 million is sufficient to cover three months of imports.

But what Reddy does not say is that reserves have been boosted by a loan from the Asian Development Bank for improving water and sewarage in the Suva-Nausori corridor in the Central Division.

$980 million Fiji dollars is equivalent to $490 million US Dollars - the global trading currency.

Sources say Reddy's claim that the economy will enjoy modest recovery is probably nonsense given a decline in exports and the tourist industry.

The agricultural sector has been the hardest hit with sugar on the decline since the coup of December 2006.

The regime has previously stated that inflation in December will be 9.5% - the highest in many years.

Coupfourpointfive has been told that with rising inflation, low consumer spending, decline in exports, reduction in tourist numbers and deterioration of the sugar industry, Reddy is painting a false picture when all signs point towards a gloomy 2010 and beyond.

3 comments:

Anonymous said...

This is the transparency that Frank has been boasting about. Full of sound and fury but signifying nothing at all!

Anonymous said...

Tourism certainly took a hit with the coup in 2006 (and it continues to be difficult to revive in the face of the global economic downturn which has reduced the spending power of our largest visitor nations), however the decline in the sugar industry long pre-dates December 2006, and it is misleading to imply that this trend has something to do with the coup.

Anonymous said...

If 9.5% inflation does'nt sound warning bells nothing will.