Solomon Islands: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Solomon Islands

IMF Staff Country Reports, February 25, 2025

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Solomon Islands: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Solomon Islands

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Bibliographic details

• Published: February 25, 2025
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798229002639.002

Summary and context

• The 2024 Article IV Consultation discusses that Solomon Islands has weathered important shocks including civil unrest and the pandemic, successfully hosted the Pacific Games, and conducted peaceful general elections.
• While IMF expects continued modest growth in 2024 and 2025, medium-term growth prospects appear moderate and fiscal and current account deficits are expected to persist.
• Now is the time for the authorities to advance reforms to tackle the perennial challenge of stagnant per-capita income growth, while ensuring fiscal sustainability and resilience.

Growth and outlook

• Continued modest growth is expected in 2024 and 2025.
• Medium-term growth prospects appear moderate.
• Fiscal and current account deficits are expected to persist.

Fiscal policy, public financial management, and data

• There is an urgent need to enhance the effectiveness of fiscal policy by addressing fundamental weaknesses in fiscal data and public financial management.
• A financing gap in the budget proposal should be eliminated.

Monetary policy

• The monetary policy stance is appropriate and should remain data dependent.

Sectoral opportunities and productivity

• There is scope for significant productivity gains in the agriculture and fisheries sectors through targeted mechanization and improved connectivity in rural areas.

Governance, anticorruption, and natural resources

• Concrete measures are needed to strengthen the capacity of anticorruption institutions.
• Governance weaknesses in the forestry and mining sectors need to be addressed.

Policy recommendations (high-level)

• Advance reforms to raise per-capita income and ensure fiscal sustainability and resilience.
• Eliminate the financing gap in the budget proposal.
• Improve fiscal data and public financial management systems.
• Maintain a data-dependent monetary policy stance.
• Promote targeted mechanization and improved rural connectivity to boost agriculture and fisheries productivity.
• Strengthen anticorruption institutions and governance in forestry and mining sectors.

Content in this bundle

• Hosting the 2023 Pacific Games: Benefits and Costs
  • Hosting the 2023 Pacific Games: Benefits and Costs (Markdown version)
  • Hosting the 2023 Pacific Games: Benefits and Costs (PDF)