inia naiyaga : engineers ’ role in economic growth and financial stability speech by mr inia naiyaga, deputy governor of the reserve bank of fiji, at the fiji institute of engineers ’ ( fie ) workshop, suva, 2 june 2011. * * * welcome the president, mr pratarp singh and members of the fiji institute of engineers ; distinguished speakers ; distinguished guests ; ladies and gentlemen ; introduction my presentation this morning is “ engineers ’ role in economic growth and financial stability ”. let me begin with the outline of my presentation. firstly, i will look at the recent developments in the international and domestic economy followed by the contribution of the building and construction industry to the fiji economy. i will also elaborate on the economic costs arising from natural disasters and the importance of the national building code to fiji and the way forward. global economy developments in the world economy remain promising. although the world gdp growth forecast was unchanged in april, conditions remain significantly varied across major regions of the world. while the recovery in the us economy is showing signs of slowing, growth in most of asia remains strong. however, the outturn in asia is still below the rapid pace experienced in the earlier recovery, with the exception of japan where earthquake - related damage is having a significant effect on economic activity. at the same time, growth in other emerging markets and transition economies has been encouraging. however, uncertainties linger on the horizon. global risks prevail in terms of rising unemployment and inflation, and even though global food prices were unchanged in april this year – they are still higher by 36 percent when compared with the same period last year. furthermore, global imbalances are anticipated to widen further if overheating in asia worsens. domestic economy domestically, the performance of the economy last year was supported by the improved global economic recovery. in 2010, fiji ’ s economy is estimated to have grown marginally by 0. 6 percent driven by the positive performance of the manufacturing, hotels and restaurants, mining, financial intermediation and services, and real estate sectors. this year, aggregate growth is expected to be 2. 7 percent. growth is predicted to be broad based in 2011 with the only decline ( marginal ) expected in the construction sector. most sectors of the economy ( like tourism and mining ) are expected to maintain their 2010 momentum into this year. additionally, the sugar sector is forecast to increase production this year given the reforms currently undertaken within the industry. bis central bankers ’ speeches looking forward

today, we envisage many benefits to both countries. trade relationships between papua new guinea and fiji will be strengthened. we will see increased competition for banking services and products. there will also be an opportunity for capacity building as fiji staff work in other bsp branches and vice versa. we at the reserve bank of fiji look forward to working closely with bank of south pacific limited to ensure that fiji ’ s financial system is dynamic and sound. i look forward to your contribution to the economy and the financial system. once again, i congratulate you on the official opening of bank of south pacific limited and wish you every success in your operations. thank you.