Also, structural bottlenecks and lack of competition translated into a mismatch between wage and productivity developments and led to an overexpansion of the non-tradables sector. In countries such as Spain or Ireland, fiscal policies were more prudent. Still, imbalances built-up, mainly taking the form of a real estate bubble. In Ireland, an oversized financial sector developed in tandem with the real estate bubble.
Inia Naiyaga: Fiji’s economy, outlook and performance of its insurance industry Keynote address by Mr Inia Naiyaga, Acting Deputy Governor of the Reserve Bank of Fiji, at the launch of LICI’s new “Double Bula Life Plan”, Suva, 4 October 2012.