Solomon Islands economy projected to only fall by minus 3.9% not as an earlier projection

The Central Bank of Solomon Islands’ (CBSI) latest preliminary growth forecast for this year indicates the country’s economy will fall by minus 3.9 per cent. 

This is lower than its initial projections of up to minus 5 percent. 

CBSI explained, the negative outlook is due to the direct impact of COVID-19 on all aspects of the country’s economy, particularly on tourism, transport, manufacturing, and construction sectors. 

It also predicted a moderate fall in the forestry and fisheries sectors for this year. 

However, the report said, substantial assistance provided by donor partners to the health sector has not only to help the country prepare for the pandemic but also to cushion the economy from further weakening. At the same time, it strengthens our foreign reserves. 

Meanwhile, the country’s economic condition in the first six months of this year has already weakened as anticipated. 

It said, up to June this year, the country’s commodity front experienced a decline of 32 per cent due to a significant fall in round logs, cocoa and fish exports.