Balance of Payments

Release No: 30, 2013

26th April, 2013


 

This statistical release has been compiled for the year 2012. Figures for the March, June and September Quarter of 2012 have been incorporated into the table. The Services account for December Quarter 2012 have been estimated.

 

December Quarter 

 

Provisional Balance of Payments data for the December Quarter 2012 show the following:

 

CURRENT ACCOUNT

The balance on current account for the December quarter of 2012 showed a net outflow of $F44.8m. This was a significant increase compared to the $F9.1m net outflow recorded in the December quarter of 2011. The following flows were recorded:

  • Net goods deficit improved by $F46.0m due to an increase in the exports of sugar;
  • Net services surplus decreased by $F0.8m due to a decrease in travel credits;
  • Net primary income deficit increased by $F110.5m due to an increase in the outflow of investment income and; 
  • Net secondary income surplus increased by $F29.6m due to an increase in personal transfers from abroad.

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

BOP a 

 

CAPITAL ACCOUNT

The capital account recorded a net inflow of $F2.1m in the December quarter of 2012. This was $2.4m lower than the net inflow recorded a year earlier.

 

FINANCIAL ACCOUNT

The balance on financial account for December quarter, 2012 recorded a net borrowing of $F52.6m which consisted of -$F113.5m in equity and $F60.9m in debts.

Direct investment recorded a net outflow of $F120.7m:      

  • Direct investment assets recorded an inflow of $F1.2m.
  • Direct investment liabilities recorded an inflow of $F121.9m.

Portfolio investment recorded no transaction.

Other investments recorded a net inflow of $F28.2m. This was the net effect of the following:

  • Other investment assets recorded an inflow of $F125.3m. This was due to the inward contribution of $F80.1m in currency and deposits, $F31.2m in trade credit and advances and $F17.7m in other accounts receivable. However, there was a withdrawal of $F3.7m in loans.
  • Other investment liabilities recorded an inflow of $F97.1m. This was due to the inward contribution of $F22.6m in currency and deposits, $F57.7m in loans and $F16.8m in trade credit and advances.

Reserve assets showed an inflow of $F39.9m in the December quarter of 2012.

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

 

BOP b

 

 

Annual 2012

 

Provisional Balance of Payments data for 2012 show the following:

 

CURRENT ACCOUNT

 

The balance on current account for 2012 showed a net inflow of $F70.2m. There was a significant improvement compared to the $F152.4m net outflow recorded in 2011. The following flows were recorded:

 

  • Net goods deficit improved by $F113.6m due to an increase in the exports of sugar;
  • Net services surplus increased by $F49.0m due to an increase in travel credits;
  • Net primary income deficit increased by $F62.3m due to an increase in outflow of investment income and; 
  • Net secondary income surplus increased by $F122.3m due to an increase in personal transfers from abroad.

 

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

BOP c

 

CAPITAL ACCOUNT

 

The capital account recorded a net inflow of $F7.1m in 2012. This was $3.5m lower than the net inflow recorded a year earlier.

 

FINANCIAL ACCOUNT

 

The balance on financial account for 2012 recorded a net borrowing of $F310.9m which consisted of -$F465.2m in equity and $F154.m in debts.

Direct investment recorded a net outflow of $F476.6m:      

  • Direct investment assets recorded an inflow of $F2.9m.
  • Direct investment liabilities recorded an inflow of $F479.5m.

Portfolio investment recorded no transaction.

Other investments recorded a net outflow of $F18.8m. This was the net effect of the following:

  • Other investment assets recorded an inflow of $F225.6m. This was due to the inward contribution of $F98.0m in currency and deposits, $F64.4m in trade credit and advances and $F71.7m in other accounts receivable. However, there was a withdrawal of $F8.5m in loans.
  • Other investment liabilities recorded an inflow of $F244.4m. This was due to the inward contribution of $F40.4m in currency and deposits, $F136.2m in loans and $F74.3m in trade credit and advances. However, there was a withdrawal of $F6.5m in other accounts receivable.

Reserve assets showed an inflow of $F184.5m in 2012.

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

 

BOP d

 

The conceptual framework used in compiling the detailed Balance of Payments Statistics from 2010 to 2012 is the International Monetary Fund’s Balance of payment and International Investment position Manual Sixth Edition. Apart from the annual data, Table 1 also contains the quarterly aggregates.

 

Appendix 1 contains Technical Notes.

 

References can also be made to Fiji Bureau of Statistics’ Quarterly Releases on International Investment Position, 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 the FOB (free on board) basis.

 

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