JOINT BRIEFING TO STAKEHOLDERS OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success OUR VISION Leading Fiji to Economic Success IMPROVING GDP ESTIMATES FOR FIJI JOINT BRIEFING TO STAKEHOLDERS 21 October 2016

Outline Recommendations: GDP Importance Current Practice Ministry of Economy Fiji Bureau of Statistics Fiji Revenue & Customs Authority

IMPORTANCE OF GDP Why is GDP so Important? The GDP statistics is one the main indicators used to gauge the health of a country’s economy. More importantly, GDP statistics assist to evaluate the following: It highlights the current and historical economic trends. These trends assist businesses with planning investments, setting up strategic actions and targets, especially for the long-run. Most Governments and economic planners use GDP as an indicator for planning and policy formulation. Because government policies directly influence the financial markets, investors keep a close tab on the GDP growth and estimates. GDP helps the investors to manage their portfolios by providing them a snap shot on a country’s economic state. Investors normally study GDP trends to recognise the signs of a growing economy, and invest accordingly. Moreover, the various components of GDP give insights of the performance of major economic sectors, which may assist an investor to manage and invest in the most lucrative sectors of the economy. GDP growth is an indicator used by economic organisations to compare an economy’s performances across regions. For instance, the IMF and the World Bank assess the performance of an economy and provide policy advice and financing to member countries. For the citizens overall, a healthy economy usually demonstrates low unemployment and wage increases as businesses demand labour to service a growing economy

CURRENT PRACTICES FOR GDP ESTIMATES: FBOS carries out annual surveys to compile current years GDP estimates, utilises Government expenditures, liaises with industry stakeholders and uses some of the partial indicators to get latest estimates However, current GDP estimates may be understated as it does not measure: non-market, illegal and black economy activities

CREDIT CONDITIONS SURVEY The survey will determine the underlying causes of credit growth by commercial banks, as well as gauge expectations on bank lending conditions for the forthcoming quarter. Such a survey will provide support for our current analysis on monetary conditions and financial stability. Suggestions The Reserve Bank’s as part of its macro-prudential surveillance work should conduct a credit conditions survey initially on the banking industry, to enhance understanding and monitoring of trends and developments in credit conditions within Fiji’s financial sector. The survey questionnaire can be comprised of four sections: credit standards and pricing, demand for loans, non-performing loans and additional questions.

REAL ESTATE MARKET SURVEY Studies have shown that real estate prices and macroeconomic variables are closely linked. Real estate or housing makes up a large share of the overall macro economy. At the household level, housing constitutes a significant share of household expenditure as well as total wealth. This means that substantial fluctuations in housing price would have significant implications on household wealth effects and ultimately influence economic activity via private consumption and investment decisions. Suggestions The survey to look into the developments in the real estate market in Fiji to examine the changes in the volume and average price of real estate properties traded in the country during the year., etc. Real estate constitutes all property type sales including Residential A, B, C, D, Industrial, Commercial Conduct survey in selected areas in Fiji’s Central/Eastern and Western Division. Property prices are obtained from the Valuations Office of the Lands Department, which is originally sourced from the Fiji Revenue and Customs Authority (Stamp Duties)

Combined Recommendations for all Institutions (MOE, FBOS & FRCA) Sharing of data: Statistics, reports, etc Dynamic Business registry Reducing compliance burden: Streamlining of surveys Access to company level tax data Communicating MOUs throughout respective organisations – ensure this is carried out during handover process for change in leadership Ensure that staff possess relevant qualifications Upskilling of staff – training Improve inter-organisation rapport

Ministry of Economy Please fund your statistics offices! FBOS needs sufficient resources for improved data collection (eg: expand survey line) and reporting (eg: compiling new useful statistics such as environmental statistics) Autonomy of FBOS More active participation by FBOS during the Macroeconomic Sub-Technical Committee forecasting process.

Fiji Bureau of Statistics Increase awareness on importance/end usage of data provided through newspaper articles, television and radio segments (in iTaukei and Hindi), advertise for all surveys throughout the year

Fiji Revenue & Customs Authority Sharing company level data with other institutions

Vinaka vakalevu