BALANCE OF PAYMENTS - March 2013 [p]

Release No: 58, 2013                                                                                                          

9th August, 2013


 

All values in this release are in Fiji Dollars (FJD).

 

Provisional Balance of Payments data for the March Quarter of 2013 show the following:

 

CURRENT ACCOUNT

The balance on current account for the March quarter of 2013 showed a net outflow of $391.0m. This was a significant increase when compared to the $32.7m net outflow recorded in the year earlier period. The following flows were recorded:

  •              Net goods deficit increased by $381.8m due to a decrease in the exports of sugar;
  •              Net services surplus decreased by $4.4m due to a decrease in Fiji’s earnings from tourism;
  •              Net primary income deficit improved by $1.5m due to an increase in the inflow of investment income and; 
  •              Net secondary income surplus increased by $26.4m due to an increase in personal transfers from abroad.

The following graph shows the current account and its major aggregates.

BOP Mar13

 

 

CAPITAL ACCOUNT

The capital account recorded a net inflow of $1.3m in the March quarter of 2013. There were no changes in the net inflow recorded a year earlier.

FINANCIAL ACCOUNT

The balance on financial account in the March quarter of 2013 recorded a net borrowing of $353.8m which consisted of net outflows of $68.2m in equity and $285.8m in debts.

Direct investment recorded a net outflow of $F68.8m. A decrease of $47.6m from the net outflow of $116.4m in March quarter of 2012, where;               

  •              Direct investment assets recorded an inflow of $6.0m;
  •              Direct investment liabilities recorded an inflow of $74.8m.

Portfolio investment recorded a net outflow of $0.2m, where;

  •              Portfolio investment assets recorded no transaction;
  •              Portfolio investment liabilities recorded an outflow of $0.2m.

Other investments recorded a net outflow of $227.4m. This was the net effect of the following:

  •              Other investment assets recorded an outflow of $58.8m. This was due to the outward contribution of $31.5m in currency and deposits, $13.2m in loans, $13.0m in trade credits and advances and $1.1m in other accounts receivable.
  •              Other investment liabilities recorded an inflow of $168.6m. This was due to the inflow contribution of $151.5m in loans and $34.2m in trade credits and advances. However, there were outflows of $16.8m in currency and deposits and $0.3m in other accounts receivable.

Reserve assets recorded a net outflow of $F57.4m, a turnaround of $58.6m from the net inflow of $1.2m in the March quarter of 2012.

 The following graph shows the financial account and its major aggregates.

BOP Mar13a

The International Monetary Fund’s Balance of Payment and International Investment position Manual Sixth Edition (BPM6) has been used in compiling the detailed Balance of Payments Statistics from 2005. Apart from the annual data, tables attached also contain the quarterly aggregates.

 

Click HERE for Tables

 

References can also be made to Fiji Bureau of Statistics’ Quarterly Releases on International Investment Position (IIP), Trade in Services and the monthly Releases on International Merchandise Trade Statistics (IMTS). Caution however, should be exercised when comparing imports reported in the IMTS Release as they are on a CIF (cost, insurance and freight) basis, whereas in Balance of Payments adjustments are made to the imports to have it reported on FOB (free on board) basis.

 

For further enquiries please contact Ms Radhika Kumar on Telephone 3315822 ext 118 and email: