Solomon Islands: 2016 Article IV Consultation and Fifth and Sixth Reviews Under the Extended Credit Facility Arrangement — Press Release; Staff Report; and Statement by the Executive Director for Solomon Islands
IMF Staff Country Reports, March 23, 2016
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- Solomon Islands: 2016 Article IV Consultation and Fifth and Sixth Reviews Under the Extended Credit Facility Arrangement — Press Release; Staff Report; and Statement by the Executive Director for Solomon Islands
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Bibliographic details
- Published: March 23, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498371865.002
Overview
- Presents an overview of Solomon Islands’ economy under the IMF Extended Credit Facility (ECF) program.
- Characterizes Solomon Islands as a small island state, low-income country, severely affected by external shocks, including commodity price declines, natural disasters, and climate change.
- Notes that, despite low access, the ECF program has been effective in catalyzing donor support.
Macroeconomic performance and outlook
- Economic growth in 2015 is estimated at 3¼ percent.
- Near-term prospects are described as favorable.
- Medium-term outlook: new sources of growth are needed over the medium term to sustain improvements.
Program effectiveness and fiscal stance
- The ECF program delivered considerable gains in terms of macroeconomic stability.
- Despite the program’s low access, it played an important role in mobilizing donor support.
Risks and vulnerabilities
- Major external shocks identified:
- Commodity price declines.
- Natural disasters.
- Climate change.
- These shocks pose ongoing risks to growth and macroeconomic stability.
Key policy recommendations (as discussed in the paper)
- Strengthen policies to support macroeconomic stability under the ECF arrangement.
- Identify and promote new sources of medium-term growth.
- Continue measures to catalyze and coordinate donor support to mitigate the impact of external shocks.
Metadata and scope
- Subject areas highlighted: Currencies, Environment, Expenditure, External debt, Natural disasters, Public debt, Public financial management (PFM).
- Keywords included: Asia and Pacific, authorities' effort, basket peg regime, CR, debt, deficit, ECF arrangement, government, IMF's Extended Credit Facility, ISCR, Natural disasters, Pacific Islands, reform agenda.
Source: IMF Staff Country Report — Solomon Islands: 2016 Article IV Consultation and Fifth and Sixth Reviews Under the Extended Credit Facility Arrangement (Country Report No. 2016/090).