IMF Staff Country Reports

Solomon Islands: 2023 Article IV Consultation-Press Release; and Staff Report

Publication Date:

May 12, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The economy is recovering from the shocks of civil unrest in November 2021 and a local outbreak of COVID-19 in early 2022, driven by increasing activity after the reopening of the border and preparation for the 2023 Pacific Games. But the recovery has been fragile, as Russia’s war in Ukraine has led to a decline in the terms of trade and rising inflation. A large pipeline of infrastructure projects financed by concessional borrowing is expected to support medium-term growth and help reduce a large infrastructure gap. But the country’s external position is projected to significantly weaken because of these projects and declining log exports, with reserve coverage declining as a result. This outlook highlights the pressing needs for reform to improve public investment management, as well as to diversify the economy and enhance its competitiveness.

Series:

Country Report No. 2023/162

Subject:

Commercial banks Economic and financial statistics Expenditure External debt External sector statistics Financial institutions International organization Monetary policy Public debt

Frequency:

regular