Solomon Islands: 2026 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, July 7, 2026
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- Solomon Islands: 2026 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: July 7, 2026
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229052214.002
Macroeconomic outlook and shocks
- Growth is expected to slow to 2.6 percent in 2026, weighed down by the war in the Middle East.
- Inflation is expected to rise to an average of 5.4 percent.
- Temporary measures to mitigate the effects of the Middle East conflict should remain targeted, time-bound, and well-coordinated with development partners.
Fiscal policy and public financial management
- Weak public financial management and governance continue to constrain effective policy implementation, underscoring the need for a comprehensive reform agenda to strengthen macroeconomic stability and support sustainable growth.
- Fiscal policy priorities:
- Reduce deficits.
- Rebuild liquidity buffers.
- Adopt realistic, fully financed budgets within a transparent medium-term fiscal framework.
- Avoid further delays in implementing a value-added tax.
Monetary policy and exchange rate management
- Monetary policy should remain responsive to inflationary risks.
- Support monetary policy with gradual modernization of policy operations.
- Absorb excess banking system liquidity carefully without relying on ad hoc exchange rate adjustments.
Financial sector and stability
- The financial sector remains broadly resilient.
- Priority actions:
- Strengthen financial stability.
- Strengthen financial integrity.
- Promote financial inclusion.
Structural reforms and data
- Accelerate structural reforms to improve:
- Productivity.
- Infrastructure.
- Governance.
- Climate resilience.
- The business environment.
- Close critical data gaps to enhance long-term growth and policy effectiveness.
Content in this bundle
- 1slbea2026001