By Loretta B. Manele
The latest domestic economic update suggests that the recovery process is gaining momentum and remains positive, according to recent data.
Manasseh Sogavare, Minister for Finance and Treasury (MoFT), made this statement while presenting the 2025 Appropriation Bill 2024 in parliament yesterday.
He highlighted that the continued positive trajectory is evident in the strong GDP growth of 3.1% projected for 2024, compared to earlier estimates of 2.8%.
Sogavare noted that the growth outcome for 2024 surpasses the post-COVID-19 average growth rate, reflecting a robust economic rebound.
Key drivers of this growth include strong performances in agriculture, mining, fishing, construction, wholesale and trade, other businesses, and the service sector, along with improvements in manufacturing and an upward trend in tourism and employment.
Looking ahead, Sogavare shared that the Solomon Islands’ economic recovery is expected to remain stable, with GDP growth projected at 3.8% in 2025, 4.3% in 2026, and 4% in 2027. These figures exceed the historical average GDP growth rate of 2.5% recorded during the pre-COVID-19 period.
He also noted that the latest projections represent an increase of 0.5% for 2025 and 0.4% for 2026 compared to estimates from the October 2023 budget.
However, Sogavare cautioned that these projections remain subject to uncertainties, citing ongoing geopolitical conflicts in Europe and the Middle East, as well as fluctuating commodity prices.
“The recovery process from shocks is ongoing and unpredictable, with elevated uncertainty in both the global and domestic economic environments,” Sogavare said.
