Balance of Payments Statistics, 2008

• Current account deficit of $F1009.5 million
  
• Capital account surplus of $F25.7 million
  
• Financial account inflow of $F617.1 million

Current Account
The current account deficit for the year 2008 was $F1009.5 million compared with the 2007 deficit of $F765.1 million. This was the net effect of the following

• An increase of $F407.3 million, to $F1878.8 million, in the net goods deficit.



• An increase of $F75.3 million, to $F620.5 million in the net services surplus. The surplus was driven by the increase in exports of services by $F193.1 million to $F1573.1 million. Increases were recorded in the transportation, travel, communication and government services. Import of services increased by $F117.8million to $F952.6 million.



• A decrease of $F91.1 million, to $F44.8 million, in the net income deficit. The decrease was largely driven by the decrease in outflow of investment income.



• A decrease of $F3.5 million to $F293.6 million in the net current transfers surplus. The decrease was largely due to the decrease in the inflows of workers remittances from abroad.

The balance on capital account for 2008 recorded a surplus of $F25.7 million. The surplus was driven by the increase in the capital account inflow by $F19.7 million to $F75.9 million. The increase in inflows was due to the increase in aid in kind and other capital transfers received.

Capital account outflows also increased by $F15.3 million to $F50.2 million.

Financial Account
The balance on financial account for 2008 recorded a net inflow (surplus) of $F617.1 million. Fiji’s total investment abroad was -$F199.7 million of which:

• Direct investment recorded an equity capital of $F18.4 million



• Portfolio investment equity securities – no transaction



• Other investment was -$F218.1 million of which trade credits extended on exports was -$F41.6 million, loans made by Fiji residents was -$F88.4 million, currency and deposits was -$F47.6 million and other assets was -$F40.5 million.

• Direct investment was $F517.6 million of which equity capital was $F442.5 million, reinvested earnings was $F62.4 million and other capital was $F12.7 million. The large increases in equity capital from 2000 onwards was largely due to the inclusion of construction of new hotels, etc, for non residents in Fiji by resident construction companies.



• Portfolio investment was -$F74.7 million of which equity securities was -$F10.1 million and debt securities was -$F64.6 million.



• Other investment recorded was $F107.6 million of which trade credits received on imports was -$F8.8 million, loans received by Fiji residents was -$F12.2 million, currency and deposits was $F88.5 million and other liabilities was $F40.1 million.