This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Financial Markets Analyst at the HFC Bank, Shoran Devi.

Provisional data put the value of goods imported in 2016 at $4,839.2 million while the value of total exports was $1,936.6 million (refer graph).

Compared to 2015, imports increased by $82.4 million (1.7%) while total exports decreased by $122.6 million (6.0%). The 2016 international merchandise trade deficit amounted to $2,902.6

Compared to 2015, some of the import categories recording notable increases were:

Machinery, mechanical & electrical appliances & parts thereof were up by $100.7 million (12.8%) to $889.3 million due to increased imports of other dish washing machines of the household type.

Vehicles, aircraft & associated transport equipment, up $81.1 million (16.2 %) to $580.8 million due to increased imports of used or reconditioned passenger motor cars;

Base metals & articles thereof, up $45.8 million (15.9%) to $333.7 million due to increased imports of barbed wire of iron or steel;

Plastic, rubber & articles thereof, up $32.6 million (14.0%) to $266.0 million due to increased imports of new pneumatic tyres;

Wood, cork & articles thereof & plaiting materials, up $31.1 million (134.4%) to $54.2 million due to increased imports of other articles of wood.

Compared to 2015, the import categories recording notable decreases were:

Mineral products, down $272.0 million (26.2%) to $765.8 million due to decreased imports of gas oil (diesel);

Live animals: animal products, down $24.8 million (7.2%) to $321.1 million due to decreased imports of fresh fish;

Animal or vegetable oils & fats, down $6.3 million (9.9%) to $57.0 million due to decreased imports of imitation lard, liquid margarine and shortenings, vegetable oils and fats; and

Textiles and textile articles, down $5.8 million (2.4%) to $233.9 million due to decreased imports of garments.

For the year 2016, Fiji’s major sources of imports (refer graph) were:

New Zealand, up $124.4 million (17.3%) to $843.0 million due to increased imports of potatoes;

Australia, up $73.9 million (9.6%) to $840.2 million due to increased imports of lamb;

Singapore, down $109.1 million (12.8%) to $743.8 million due to decreased imports of gas oil (diesel);

China – People’s Republic, up $46.1 million (6.6%) to $741.9 million due to increased imports of canned fish; and

Japan, up $122.0 million (58.1%) to $332.1 million due to increased imports of vehicles.

Performance of Fiji’s principal import commodities for the year 2016 shows growth in the imports of:

Vehicles, aircraft & associated transport equipment by 39.4 percent;

Base metals & articles thereof by 15.9 percent;

Plastic, rubber & articles thereof by 14.0 percent;

Machinery, mechanical & electrical appliances & parts thereof by 12.8 percent;

Chemicals and allied products by 7.5 percent;

• Wood pulp, paper & paperboard & articles thereof by 6.9 percent;

Prepared foodstuffs, beverages, spirits & tobacco by 4.9 percent; and

Vegetable products by 1.2 percent.

Decreases were recorded in the imports of:

Mineral products by 26.2 percent;

Live animals: animal products by 7.2 percent; and

Textiles and textile articles by 2.4 percent.

Compared to 2015, the domestic export categories recording notable increases were:

Pearls, precious, semi-precious stones & metals, up $24.5 million (23.4%) to $129.3 million due to increased domestic exports of gold;

Live animals: animal products, up $20.5 million (22.0%) to $113.6 million due to increased domestic exports of fresh fish; and

Machinery, mechanical & electrical appliances & parts thereof, up $11.0 million (69.5%) to $26.9 million due to increased domestic exports of lead acid of a kind used for starting piston engines.

Compared to 2015, the domestic export categories recording notable decreases were:

Prepared foodstuffs, beverages, spirits & tobacco, down $52.7 million (10.5%) to $446.7 million due to decreased domestic exports of sugar;

Wood, cork & articles thereof & plaiting materials, down $29.2 million (31.4%) to $63.9 million due to decreased domestic exports of woodchips; and

Textiles & textile articles, down $7.9 million (6.8%) to $109.0 million due to decreased domestic exports of garments.

For the year 2016, Fiji’s major domestic export destinations (refer graph) were:

United States of America, down $31.8 million (9.9%) to $288.1 million due to decreased exports of molasses;

Australia, up $9.4 million (3.8%) to $259.3 million due to increased exports of gold;

United Kingdom, down $32.6 million (31.6%) to $70.6 million due to decreased exports of sugar;

New Zealand, up $3.1 million (4.9%) to $65.5 million due to increased exports of dalo; and

Vanuatu, up $7.6 million (15.5%) to $56.7 million due to increased exports of pasta.

Performance of Fiji’s principal domestic export commodities for the year 2016 shows a growth in the exports of:

Coconut oil by 65.1 percent;

Kava by 60.8 percent;

Gold by 30.1 percent;

Footwear and headgear by 16.6 percent;

Mineral water by 7.3 percent;

Uncooked pasta by 2.0 percent;

Fruits and vegetables by 1.0 percent; and

Textiles, yarn & made up articles by 0.6 percent.

Decreases were recorded in the exports of:

Molasses by 69.9 percent;

Folding cartons, boxes and cases by 41.9 percent;

Coral & similar materials by 41.2 percent;

Ginger by 32.2 percent;

Timber, cork & wood by 31.4 percent;

Sweet biscuits by 26.0 percent;

Sugar by 20.4 percent;

Corned meat of bovine animals by 14.0 percent;

Garments by 7.2 percent;

Flour by 5.1 percent; and

Fish by 2.5 percent.

Also called “net exports”, the trade balance is a component of GDP. In financial terms, trade balance influence the total size and the composition of the current-account balance and, more broadly, it influences the balance of payments (which comprehends not only the trade balance but also income payments, loans and aid from abroad, and so on).

While our trade deficit looks relatively large, it is not uncommon for small open economies to have trade deficits. In the case of Fiji, the trade deficit is financed by the strong tourism earning and personal remittances.