The Central Bank of Solomon Islands. Photo: Courtesy of CBSI.

The Central Bank of Solomon Islands. Photo: Courtesy of CBSI.

The Solomon Islands economy is projected to grow at 3.3 percent, down slightly from the 3.5 percent initiallyanticipated for this year.

A monetary policy statement from the Central Bank of Solomon Islands (CBSI) for last month states, the downward revision represents slowdowns in emerging economies and very slow recovery in the advanced economies.

It says weak commodity prices, decreasing emerging market currencies, weaker capital inflows, and financial market volatilities were the key underpinnings behind the revision.

Solomon Islands’ major trading partners recorded positive growths inrecent quarters despite downside risks.

The Chinese economy picked up seven percent in June 2015 with more fiscal and monetary space for the authorities to conduct accommodative policies.

Likewise, Australia experiences a slower growth of 2.5 percent sofar on the back of low commodity prices compounded by subdued domestic demand.

New Zealand projects a higher growth of 2.9 percent for 2015 with the impetus coming from migration, construction activities and robust labour income.

However, the statement reports, inflation in trading partners remained within central bank targets.

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