Wednesday, 16 May 2012 8:11 AM

IMF Impressed with Positive Growth

The International Monetary Fund says it is impressed with current economic developments in the Solomon Islands.

The Fund's Head of Pacific Islands Unit Patricia Tumbarello, who was in the country with her team on an assessment mission, says they are pleased with the progress made so far in terms of the country's economy.

"We are pleased on how things are going over the last few months. We see growth remaining very strong, definitely strong in 2011 with over ten per cent and even in 2012 there are signs that activity continues to be strong especially in construction, transportation and retails," she said.

"This is due to several factors, one of them of course is the Pacific Arts Festival in July, that is growth not only in the near term but we hope that it's going to have a much longer spillover effects in terms of rehabilitation."

Ms Tumbarello says that with such infrastructure rehabilitation progressing well, the IMF group expects growth to continue.

She says as the global economic environment is uncertain with unfolding events in Europe; "where there is a real need for the country to be cautious on risks."

The IMF's Pacific Islands Unit Chief says she is confident both the Central Bank of Solomon Islands and the Ministry of Finance are aware of these risks and are building enough buffers to avoid them.