Economic growth rate too low to improve lives: finance minister
John Maneniaru, Minister of Finance and Treasury. Photo credit: GCU.
The economic growth rate for Solomon Islands is higher than the population growth rate, but it might not be high enough.
Minister of Finance and Treasury John Maneniaru told Parliament today, effects of the country’s current medium term economic growth rate of 3-4 percent per annum will be limited by the population growth rate of 2.3 percent.
“This rate of economic growth will not be sufficient to generate substantial improvements in the living standards of Solomon Islanders,” Mr Maneniaru said.
He said the economic situation requires the government to focus on broad-based growth.
“Broad-based growth that spreads the benefits of economic development should remain the top priority of the DCCG,” Mr Maneniaru said, “Given expenditure pressures and the challenges for the government will be to strike a balance between the need to generate sustainable revenue and ensures that funds are directed to quality spending.”