SI economy urgently needs reforms to prosper: Governor Forau

BY NED GAGAHE

Central Bank of Solomon Islands (CBSI) Governor Dr Luke Forau says the state of national economy urgently needs major economic reforms, warning that country’s fast growing population rate is ‘dangerously’ not good and a serious concern.

Speaking at the launch of CBSI’s 2023 annual report, Governor Forau highlighted the need to grow the economy faster than the growth of the population.

“We have a fast-growing population, with a population rate of growth higher than the average economic growth rate. This is dangerously not good and is a serious concern. We need to grow the economy faster than the growth of the population.

“As I alluded to earlier, the country is at the crossroad. We urgently need major economic reform program if the economy were to prosper in the medium to long term.

“In the short term, the government needs to implement the budget and address the “lower hanging fruits” for example, review the legislations that need to be reviewed.

“The ultimate goal of any economic reform program must be to grow the economy. There is no way around this, we must grow the economy in order to support and meet the ever-growing needs of the population. The reform program must be specific, targeted and measurable.

“The incoming government is in a better position to initiate this reform. Again, the reforms must aim at growing the economy.

“For me, a minimum average growth rate of 5% would be an acceptable rate of growth for such a developing economy as Solomon Islands.” Governor Forau said.

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