4.1 percent GDP growth projection for Solomon Islands in 2024

By Sharon Nanau

Preliminary data shows that the Solomon Islands Gross Domestic Product (GDP) is projected to grow by 4.1 percent in 2024.

While the final projections will be made known in June the expected growth was said to be driven by the mining, fishing, construction, wholesale and trade, agriculture, and other services.

Speaking to the local media, Permanent Secretary of the Ministry of Finance and Treasury McKinnie Dentana said the industry sector is expected to lead the economic recovery with the mining sector.

He said Solomon Islands economy is recovering strongly after the covid-19 pandemic. 

Meanwhile government investments in key infrastructure developments and the immediate implementation of the projects after the pandemic have enabled the strong economic recovery.

Government finance was secured during the first two months of this year while revenue collections from Customs and Inland Revenue have increased by 12 and 7 percent respectively. 

These increases were driven by log revenue, import duties and excise duties.  

Logging revenue collections in the first 2 months was much higher compared to the same periods in 2016 and 2017, due to the exports of 2023 stockpiled logs. 

The Inland Revenue Division had higher than expected revenue collection from company tax, personal tax and withholding in the first two months in 2024.

The 2024 joint election, education grants, health Grants, Solomon Islands National University grants, scholarship, terminal grants and 2021 riot support accounts for major government spending in the first two months of this year

Meanwhile the Solomon Islands GDP grew by 3.5 percent in 2023.

This is an increase of 0.8 percent from the earlier projection of 2.7 percent.

The growth was driven by the mining sector and infrastructure developments associated with the 2023 Pacific Games.

“This growth was primarily driven by a strong performance in the mining sector, increased exports in gold and nickel as well as better than expected growth in the 2023 pacific games related developments, other developments as well due to other positive developments within the agriculture sector during the year,” Mr Dentana said.

The health, public administration, and education sectors have also contributed to the growth during the year.

ENDS///