BY JOHN HOUANIHAU
Water has been identified as a key driver for jobs and economic growth in Solomon Islands, according to discussions highlighted in the latest Pacific economic update.
Solomon Islands World Bank Senior Country Economist Marko Kwaramba told the media this yesterday, after a media briefing for the launch of the bi-annual World Bank Pacific Economic Update, “Pacific Jobs Pathway”.
He said SI is the second most water-dependent economy in the Pacific after Papua New Guinea, with about 55 percent of its economic activities relying on water-related sectors.
He said that the report highlighted industries such as tuna processing, the Bina Harbour development project, and tourism as sectors that depend heavily on access to clean and reliable water supplies.
“Investment in water infrastructure can help create jobs, support existing industries and protect employment opportunities in the country,” he said.
According to Mr Kwaramba, the report also noted that SI’s rapid urbanisation and old water infrastructure have increased the need for major improvements and repairs, which could also create employment opportunities.
He said that improving the business and regulatory environment is important to allow businesses to grow and create more jobs for young people.
“The report pointed out that while SI performs relatively well in some areas, delays in services such as water connections remain higher than regional averages in East Asia and the Pacific.
In terms of the economy, Mr Kwaramba said that the SI economy recorded positive growth in 2025 despite growing global economic challenges.
He said that based on the report, SI achieved a 3.6 per cent economic growth rate in 2025, while also recording its first current account surplus since 2012 and maintaining low inflation.
“However, the positive outlook has been affected by the ongoing Middle East energy-induced crisis, which is expected to slow economic growth to 2.9 per cent and push inflation up to 4.6 per cent due to rising fuel and commodity prices,” he said.
He said that the report also noted that SI’s large investment pipeline has become a major driver of growth, but rising costs are expected to slow investment activities.
He said that concerns were also raised over the country’s growing debt levels, which increased by almost 14 percentage points from 2020 to the current rate of 30 per cent.
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