BY LORETTA B MANELE
On the outlook on the Solomon Islands economy, some sectors have projected a decline while others are projected to grow in 2025.
Harry Kuma, minister of Ministry of Finance and Treasury (MoFT) told parliament this when he read the “2025 Supplementary Appropriation Bill 2025” on Tuesday, August 5.
He said domestically, the downturn in the economy is led by a projected 7.1 percent decline in logging due to forest resource depletion and withdrawal of major operators.
Kuma stressed that this has created knock-on effects for sectors linked to logging, including retail, transport and business services.
Apart from logging, there is also the fishing sector which as stated, has contracted by 0.3% in 2025 due to poor weather, declining fish stocks and processing inefficiency.
Kuma added that construction and electricity sectors are slowing as major projects conclude along with rising costs in investments.
However, the minister said despite ongoing economic headwinds, several sectors are showing promising signs.
One of these sectors is the agriculture sector which in 2025 projected a 3.2% growth from support of better farming practices, market access and production of palm oil, copra and cocoa.
Adding on to the list is the tourism sector which is expected to grow by 4.5%, reflecting the recovery in travel demand and renewed investment.
As for one other sector, the communications sector, a 12.4% expansion will improve the inclusivity of economic growth as digital and mobile network upgrades meet growing ICT demand.
Kuma said these sectors are expected to boost incomes, create jobs and stimulate activity across related industries like transport.
He furthered that these sectors are expected to cushion the adverse effects of the decline in logging and the broader slowdown in business services, stabilising the economic outlook for next year.
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