BY LORETTA B MANELE
The remittance Solomon Islands receive is an important source of income however, it depends on what’s happening in other countries.
Minister of Finance and Treasury (MoFT), Rex Ramofafia highlighted this in his keynote address at the “2nd CBSI-ADB-APAEA Joint Workshop, that was recently held at Heritage Park Hotel.
He said for many Pacific households, remittance is an important source of income.
“For example, in Solomon Islands, remittance from our seasonal workers has grown significantly over the past five years, rising from $80 million in 2020 to $457 million in 2024,” he said.
The Minister stated that while it provides a vital boost to household income, this source of income depends on what happens in other countries.
He said this in regards to the labour market, growth and policies in other countries, pointing out that when global conditions weaken, it affects the flow of remittance into the country, affecting spending and demand at home.
Ramofafia mentioned that research on the link between inflation and remittance will help us understand this better.
He stressed that remittance can influence exchange rate, consumption, and even local price pressure.
Ramofafia said that on top of that, global trade tensions and geopolitical risks continue to create uncertainty, as also highlighted by the previous speakers at the workshop.
He noted that for a small open economy as that of Solomon Islands, we need fiscal and monetary policies that are well-coordinated to boost international support for households and maintain economic stability.
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