THE reduction in logging activities will put pressure on the government’s ability to earn sufficient foreign exchange to pay for the current levels of imports.
This requires the government to focus on developing and strengthening alternative export sectors.
The fall of logging industry will not only affect the economy but will also lead to around 5000 Solomon Islanders jobless.
Minister of Finance and Treasury Honourable Harry Kuma said logging industry is the second largest formal-sector that provides employment in the Solomon Islands.
He said reduction in logging activities will lead to loss of employment.
Hon Kuma adds that loss of these jobs will have flow-on impacts throughout the economy.
He said logging sector contracted -12.5 per cent in annual growths between 2018 and 2019.
“It is estimated to further contract on average at -7 per cent until 2024.
“Sixty (60) percent of exports and 32 percent of total foreign exchange receipts comes from log export,” Hon Kuma said.
He said logging export duties are key source of revenue with 20 percent contribution towards the domestic revenue at the moment.