## Solomon Islands: Staff Report for the 2005 Article IV Consultation

_IMF Staff Country Reports, October 13, 2005_

## Source details

**Canonical URL:** [Solomon Islands: Staff Report for the 2005 Article IV Consultation](https://www.imf.org/en/publications/cr/issues/2016/12/31/solomon-islands-staff-report-for-the-2005-article-iv-consultation-18621)

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## Bibliographic details
- Published: October 13, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451834369.002

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### Overview
- The improvement in economic performance that began after the arrival of the Australian-led intervention force in mid-2003 has continued.
- The external current account is projected to deteriorate, reflecting investment-related imports.
- Reserve coverage is expected to remain comfortable despite the projected current account deterioration.
- The budget is projected to record a small deficit owing to one-off factors and higher spending as capacity and wages rise.
- Logging is set to decline from an unsustainable level; much depends on new private activities to replace lost incomes, exports, and government revenue.

### Macroeconomic outlook and external position
- Continued economic improvement following mid-2003 intervention.
- Projected deterioration in the external current account driven by investment-related imports.
- Reserve coverage assessed as likely to remain comfortable in the projection.

### Fiscal outlook and public finance
- Budget projected to record a small deficit.
- Drivers of the fiscal outcome:
  - One-off factors.
  - Higher spending as capacity and wages rise.

### Structural issues and sectoral risks
- Logging noted to be at an unsustainable level and is expected to decline.
- Key dependency: development of new private activities to offset reductions in:
  - Household incomes.
  - Export earnings.
  - Government revenue.

### Subject focus and keywords (as listed)
- Subject: Expenditure, External debt, International trade, Public debt
- Keywords: Arrears, authority, balance of payments, broad money, CR, credit growth, current account, deficit, excess reserves, financing, Imports, ISCR, Pacific Islands, private sector, Solomon Islands debt situation, support grant, U.S. dollar

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/solomon-islands-staff-report-for-the-2005-article-iv-consultation-18621_