Map
of FijiFiji consists of 322 islands, of
which 110 are inhabited, and 522 smaller
islets. The two most important islands
are Viti Levu and Vanua Levu. Viti Levu
hosts the capital city of Suva, and is
home to nearly three quarters of the population.
The islands are mountainous, with peaks
up to 1,300 metres (4,250 ft), and covered
with tropical forests. Other important
towns include Nadi (the location of the
international airport), and Lautoka. The
main towns on Vanua Levu are Labasa and
Savusavu. Other islands and island groups
include Taveuni and Kadavu (the third
and fourth largest islands respectively),
the Mamanuca Group (just outside Nadi)
and Yasawa Group, which are popular tourist
destinations, the Lomaiviti Group, outside
of Suva, and the remote Lau Group. Rotuma,
some 500 kilometres (310 mi) north of
the archipelago, has a special administrative
status in Fiji.
Urbanization
and expansion in the service sector have
contributed to recent GDP growth. Sugar
exports and a rapidly growing tourist
industry—with 430,800 tourists in
2003 and increasing in the subsequent
years —are the major sources of
foreign exchange. Sugar processing makes
up one-third of industrial activity. Long-term
problems include low investment and uncertain
property rights. The political turmoil
in Fiji has had a severe impact on the
economy, which shrank by 2.8% in 2000
and grew by only 1% in 2001. The tourism
sector recovered quickly, however, with
visitor arrivals reaching pre-coup levels
again during 2002, which has since resulted
in a modest economic recovery. This recovery
continued into 2004 but grew by 1.7% in
2005 and is projected to grow by 2.0%
in 2006. Although inflation is low, the
policy indicator rate of the Reserve Bank
of Fiji was raised by 1% to 3.25% in February
2006 due to fears of excessive consumption
financed by debt. Lower interest rates
have so far not produced greater investment
for exports. However, there has been a
housing boom from declining commercial
mortgage rates.
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