Solomon Islands: 2023 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, May 12, 2023
Source details
- Canonical URL
- Solomon Islands: 2023 Article IV Consultation-Press Release; and Staff Report
Other formats
Bibliographic details
- Published: May 12, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400241345.002
Overview and Economic Assessment
- The economy is recovering from multiple shocks in the past three years, but the recovery is still fragile in the Solomon Islands.
- Solomon Islands’ external position in 2022 is assessed to be substantially weaker than the level consistent with medium-term fundamentals and desirable policies.
Near-term Fiscal Policy and Public Finance
- Findings:
- Near-term fiscal policy should focus on prudent execution of the 2023 budget.
- Rebuilding of the government’s cash balance should follow prudent 2023 budget execution.
- Prudent management of public investment projects including their financing arrangements is an urgent priority.
- Policy recommendations:
- Prioritize fiscal prudence in executing the 2023 budget.
- Rebuild government cash balances after 2023 budget execution.
- Strengthen oversight and financing arrangements for public investment projects.
Monetary and Exchange Rate Policy
- Findings:
- The current exchange rate regime remains appropriate.
- A timely review of the currency basket is called for, given changes in trade patterns.
- Policy recommendation:
- Conduct a timely review of the currency basket to reflect evolving trade patterns.
Structural Reforms and Growth Drivers
- Findings:
- Developing new growth drivers is an urgent priority.
- Areas for action include enhancing natural resource wealth management, market regulation, and addressing governance weaknesses and corruption vulnerabilities.
- Policy recommendations:
- Enhance natural resource wealth management frameworks.
- Strengthen market regulation to support private-sector development.
- Address governance weaknesses and corruption vulnerabilities to improve investment climate.
External Support and Capacity Development
- Findings:
- The IMF continues to support capacity development of the authorities in collaboration with development partners.
- Policy recommendation:
- Continue coordinated capacity development efforts with development partners.
Publication and Metadata
- Publication date: May 12, 2023
- Pages: 84
- Volume: 2023
- Issue: 162
- Series: Country Report No. 2023/162
- DOI: https://doi.org/10.5089/9798400241345.002
- Stock No: 1SLBEA2023001
- ISBN: 9798400241345
- ISSN: 1934-7685
- Subjects: Commercial banks; Economic and financial statistics; Expenditure; External debt; External sector statistics; Financial institutions; International organization; Monetary policy; Public debt
- Keywords: BOP unit; CBSI approval; CBSI assessment; CBSI staff; Commercial banks; External sector statistics; Global; liability positions vis-à-vis nonresident; Pacific Islands
International Monetary Fund. Asia and Pacific Dept "Solomon Islands: 2023 Article IV Consultation-Press Release; and Staff Report", IMF Staff Country Reports 2023, 162 (2023).
Content in this bundle
- 1slbea2023001