Balance of Payments

FBoS Release No: 92, 2014

31st December 2014


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

Provisional Balance of Payments data for the September quarter of 2014 show the following:

  • Current and Capital account deficit of $F205.0m;
  • Financial account deficit of $F202.1m.

CURRENT ACCOUNT – main components include Fiji’s trade balance, investment income and current transfers.

Table 1

bopSep14a

 

The current account balance for the September quarter of 2014 showed a net outflow of $206.1 million. This was a slight increase when compared to the $151.6 million net outflow recorded in the September quarter of 2013. The following flows were recorded: 

  • Net goods deficit improved by $6.4 million (from $562.6 million to $556.2 million) largely due to an increase in the exports of sugar and molasses;
  • Net services surplus increased by $41.4 million (from $360.2 million to $401.8 million) largely due to an increase in tourism earnings;
  • Net primary income deficit increased by $75.2 million (from $49.6 million to $124.8 million) as there was an increase in reinvested earnings and
  • Net secondary income surplus decreased by $27.1 million (from $100.2 million to $73.1 million) due to a decrease in personal transfers.

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

bopSep14b

CAPITAL ACCOUNT – tracks flow of aid and grants either in cash or kind for capital development and equipment purchase.

Table 2

bopSep14c

The capital account recorded a net inflow of $1.1 million in the September quarter of 2014.

FINANCIAL ACCOUNT – describes the change in ownership of international assets and liabilities.

Table 3

bopSep14d

The balance on financial account in the September quarter of 2014 recorded a net borrowing of $202.1 million which consisted of net outflows of $123.8 million in equity and $78.3 million in debts.

Direct investment recorded a net outflow of $101.1 million, an increase of $2.0 million from the net outflow of $99.1 million a year earlier where;

  • Direct investment assets recorded an inflow of $0.9 million;
  • Direct investment liabilities recorded an inflow of $102.0 million. This was due to an increase in investment from abroad.

Portfolio investment recorded a net inflow of $2.8 million, a decrease of $165.6 million from the net outflow of $162.8 million in September quarter of 2013 where; 

  • Portfolio investment assets recorded an inflow of $2.8 million; 
  • Portfolio investment liabilities recorded no transaction.

Other investment recorded a net outflow of $169.7 million. This was the net effect of the following: 

  • Other investment assets recorded a net outflow of $30.1 million. This was due to the inflow of $5.5 million in trade credit and advances, $1.6 million in other accounts receivable, loans of $0.6 million and an outflow of $37.8 million in currency and deposits.
  • Other investment liabilities recorded a net inflow of $139.6 million. This was due to the inflow of $70.8 million in currency and deposits, $67.1 million in loans, $2.0 million in trade credits and advances and an outflow of $0.2 million in other equity and $0.1 million in other accounts receivable.

Reserve assets recorded a net inflow of $65.9 million, a decrease of $6.1 million from the net inflow of $72.0 million a year earlier. 

The following graphs show the financial account’s major aggregates.

bopSep14e

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 also contain the quarterly aggregates. 

 

CLICK HERE FOR RELATED 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). However, caution 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 Torika Ketenilagi on email or Telephone 3230847.

The Balance of Payments Statistics for December quarter 2014 will be released on 31st March 2015.