However, over the longer term, the aggregate supply and demand balance is expected to improve gradually as economic activity returns to a moderate recovery path. There are also various uncertainties regarding the outlook for prices. First, if corporate and household medium- to long-term inflation expectations decline, actual prices could be lower than projected.
Fiji economy and outlook Our Macroeconomic Policy Committee is currently reviewing the earlier forecast for 2012 GDP growth of 2.7 percent. This review takes into account the combined impact of ongoing buoyancy in domestic demand on the one hand and the possible deterioration in external demand from a global slowdown, on the other hand.