The weakening of the Fiji dollar, coupled with higher duty, is likely to raise the price of cement and cars out of Japan, dampening demand. On the other hand, the strengthening of the Fiji dollar against the Aussie and Kiwi dollars will lower food prices received from Australia and New Zealand. However, demand may be inelastic. •  The trade balance may worsen.
Growth outlook •  After contracting in 2007 (-6.6%), our economy is showing some recovery in 2008 (1.2%). Forecasts for 2009 and 2010 are 2.4 percent and 1.9 percent, respectively.