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The Solomon Islands faces growing macroeconomic challenges from climate change. Rising temperatures, changing marine ecosystems, and sea-level rise are expected to affect economic growth, public finances, and key export sectors over the coming decades. This paper combines climate projections and empirical evidence to assess these risks and evaluate adaptation priorities. While fisheries are projected to face declining productivity and coastal areas increasing exposure to inundation, sustainable forestry management could generate economic gains. The findings underscore the need for efficient adaptation policies, strengthened resource management, and robust decision-making frameworks to enhance long-term economic resilience.
Fiscal expansion in response to successive shocks supported growth but raised public debt. The ECF arrangement approved in 2024, with the second review completed in June 2025, supports inclusive growth, debt sustainability, and structural reforms. Economic activity is expected to remain resilient despite a temporary slowdown in 2026 due to spillovers from the Middle East war. The outlook is subject to elevated downside risks from the challenging international environment, security threats, financial vulnerabilities, social tensions, and climate risks, which could hinder reform implementation.
The French economy continued to grow at a moderate pace in 2025 despite domestic and external shocks, while inflation remained contained. However, headwinds from the Middle East war and the energy shock have started to weigh on activity, complicating the authorities’ ongoing fiscal consolidation efforts. High deficit and debt levels, modest growth dynamics, and rising spending pressures—notably from defense, population aging, and the digital and green transitions—underscore the urgency of a credible and well-defined multi‑year strategy to unlock France’s growth potential and support fiscal consolidation. Presidential elections are planned for early 2027.
With the rise of more expansive investment models, it is time to renew focus on sound legal frameworks
Less demand, more production, and inventory drawdowns prevented a larger price spike. A quick supply recovery is essential to avoid further damage to the global economy
Integrating and deepening banking and venture capital markets would boost output by at least 3 percent, and make business dynamism reforms more powerful
Policy choices will determine whether tokenized finance strengthens or fragments the financial system
New policy tracker shows many governments pursuing costly responses to fuel and food price hikes, leaving less room to address future challenges
An overall resilient world economy masks significant differences among countries and regions. Energy importers and countries with limited policy space are most vulnerable
