Solomon Islands: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Solomon Islands

IMF Staff Country Reports, February 18, 2020

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The country "has made substantial progress since the Tensions in the early 2000s" but "faces considerable economic and governance challenges and is highly vulnerable to natural disasters."
"Finding new sources of growth is becoming urgent with the decline in logging."
Consultation themes echoed prior year concerns: "restoring fiscal buffers to build resilience, strengthening public financial management and public investment management, setting a medium-term fiscal strategy, improving governance, improving exchange rate management and building conditions for sustainable growth."

Report recommends "developing a holistic approach to medium-term fiscal policy by setting a realistic spending envelope and establishing a medium-term revenue strategy."
Combined with "strengthened budget planning and expenditure control," these steps would "provide greater budget predictability and support natural disaster contingency planning."

Priorities include "strengthening public financial management and public investment management."
Emphasis on budget predictability and expenditure control to support contingency planning for natural disasters.

It is "imperative to strengthen enforcement of governance standards."
Recommendations include applying "the mining fiscal regime rigorously," improving transparency, and advancing "the anti-corruption agenda."

The consultation calls for "improving exchange rate management and building conditions for sustainable growth."