Monday, 5 May 2008 9:24 AM

Logging Revenue Decline, Negative Economic Impact

The decline in logging revenue in five years time is predicted to have a negative impact on the economy.

In response to the situation, the Sikua government last week launched its Medium Term Fiscal Strategy to ensure the impact of the revenue decline is minimized.

The acting Finance Minister, Hon. Gordon Darcy Lilo warned that there are very significant medium term challenges to economic growth and prosperity in Solomon Islands.

"The most significant of these challenges is the projected decline of the economy and the Government revenue due to the depletion of the natural stock of logs. This stock is projected to be almost completely exhausted within the next 5 years or so."

Mr. Lilo said that with logging contributing to around 17 percent of government revenue, there is going to be a corresponding impact on economic growth and on the government's revenue.