Log export to further fall by July this year
The country’s economic mainstay, log export is expected further fall by July this year.
Finance Minister Harry Kuma made the statement when referring to a recent assessment conducted by the International Monetary Fund, IMF.
“The recent assessment by IMF on logging industry, the major sorce of government revenue has slowed down dueing february to April and is likelyb to reduce further by July 2020.”
Meanwhile, the Central Bank of Solomon Islands, CBSI, says, round log exports to China is expected to decline by more than two-million cubic meters.
It says foreign revenue might decline by 9 percent to more than two-billion dollars.
Delays in log shipments to China will also affect remittance proceeds, it adds.
CBSI predicts that log duties could fall by six-percent to more than Four hundred and sixty million dollars leading to a further one percent fall in total domestic revenue to Three and half billion dollars.
Domestically, many logging operations have suspended operations and have had their workers laid off.
CBSI, in its revised economic outlook, says Solomon Islands economy is moving into a recession in the second quarter of this year.