By EDDIE OSIFELO
SOLOMON Islands economy is projected to recover by 2.7 percent this year, largely due to the spin-offs of the Pacific Games that took place in November.
Raynold Moveni, Deputy Governor of Central Bank of Solomon Islands, made this confirmation while appearing before the Public Accounts Committee in Parliament recently, during their inquiry into the $371 million ‘2023 Supplementary Appropriation Bill’.
Moveni explained that the spin-offs from the Pacific Games would benefit various sectors of the economy.
He said the accommodation sector, for example, is expected to experience increased occupancy in hotels and motels due to overseas visitors.
Furthermore, Moveni said the transportation sector will also see a rise in demand as visitors and people from the provinces travel to Honiara for the Games.
Further to that, he said agriculture will play a role in supplying food to the Games village and meeting the increased local demand resulting from the influx of people to the city.
Additionally, Moveni said there will be a demand for utilities such as electricity and communication services, as consumption in these areas is expected to increase.
Furthermore, he said road construction is anticipated to commence after the Pacific Games, contributing to economic growth.
Despite these positive projections, Moveni emphasized that there are significant uncertainties, particularly due to the ongoing Ukraine war.
He warned that the projected economic recovery is still fragile and subject to downside risks, depending on how the external and global economy unfolds, as well as recent financial turmoil.
