Solomon Islands: Second Review Under the Standby Credit Facility and Request for a Three-Year Arrangement Under the Extended Credit Facility—Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Solomon Islands.

IMF Staff Country Reports, December 12, 2012

Source details

Canonical URL: Solomon Islands: Second Review Under the Standby Credit Facility and Request for a Three-Year Arrangement Under the Extended Credit Facility—Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Solomon Islands.

The paper is an account of the economic conditions of the Solomon Islands.
The macroeconomic situation has shown a considerable expansion in recent years with the external buffers intact.
The IMF staff expects only a moderate performance in 2013 and 2014 owing to the euro area crisis.
The state has prepared for downside risks and approaches the macroeconomic circumstances with a positive outlook.
The Executive Board admires the efforts of the Islands.

Covers the Second Review Under the Standby Credit Facility and a request for a Three-Year Arrangement Under the Extended Credit Facility.
Identified subject areas: Budget planning and preparation; Credit; Expenditure; External debt; Fiscal policy; Fiscal stance; Public debt; Public financial management (PFM).

Continued expansion of the economy in recent years.
External buffers described as intact.
Cautionary stance due to external risks, specifically the euro area crisis, leading to moderated growth expectations for 2013 and 2014.
Positive policy orientation and preparation for downside risks noted by IMF staff and commended by the Executive Board.

Box 1. Solomon Islands: Reducing Pro-cyclical Bias in Fiscal Policy
- Box 1. Solomon Islands: Reducing Pro-cyclical Bias in Fiscal Policy (Markdown version)
- Box 1. Solomon Islands: Reducing Pro-cyclical Bias in Fiscal Policy (PDF)