Tuesday, 31 July 2018 7:12 AM

Decline in Growth Rates for 2019: IMF

The International Monetary Fund (IMF) has stated that 2019 will see a decline in growth rates by 1% to 1.5%.

An International Monetary Fund (IMF) team led by Ms. Alison Stuart visited the Solomon Islands during July 18-31 to hold discussions on the 2018 Article IV Consultation.

“Growth held up well in 2017, estimated at 3.5 percent, and is projected to remain at 3.4 percent in 2018 buoyed by strong performance in logging, infrastructure spending, fisheries, agriculture, and manufacturing," Ms Stuart said in a prepared statement. 

However, that growth is expected to be moderate at 2.9 percent in 2019, due to a slowdown in logging. Inflation has picked up somewhat to 2.4 percent in June 2018, following increases in domestic and global prices.

She says that while Solomon Islands has made significant gains over the past fourteen years, in restoring law and order, re-establishing public institutions, and improving human development indicators Solomon Islands still confronts large economic and governance challenges.

"With the logging industry facing depletion, new sources of growth are needed. Challenges stem from weak management of the logging and mining sectors, a lack of transparency in the Constituency Development Funds (CDFs), and the need to strengthen public financial management."

Source: With IMF Communications Department

 

 

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