SOLOMON Islands’ economy has experienced a growth of 2.7 percent in 2024.
Minister of Finance and Treasury, Hon Harry Kuma (MP) confirmed this when speaking on the motion of Speech from the throne in Parliament on Monday.
This growth rate represents a slight decrease from the 2.9 percent recorded in 2023, but remains well above the pre-pandemic level of 1.7 percent from 2019, indicating sustained economic recovery despite recent challenges.
According to Minister Kuma, the moderated Gross Domestic Product (GDP) growth can be attributed to various factors both external and internal.
“We’ve faced challenges in global markets, disruptions from the National General Election, and stabilization in logging activities,” the Minister explained.
He also cited adverse weather conditions that affected agriculture and infrastructure development, along with an expected decline in construction activities following the conclusion of the Pacific Games in 2023.
The labour market showed promising signs with a 4 percent improvement compared to 2023 figures. Active member contributions increased to 59,494 employees in 2024, up from 57,151 in the previous year.
However, inflation has risen to 4.7 percent in 2024, driven by rising global commodity prices, fluctuations in exchange rates, and domestic supply chain disruptions.
On a positive note, the country’s balance of payments has shown improvement, with the current account deficit narrowing significantly to 4.2 percent of GDP from 12.6 percent in 2023. The capital and financial account registered a surplus of SBD$812 million, though this represents a decrease from the SBD$2.1 billion surplus recorded in 2023.
Economic analysts suggest that while the Solomon Islands continues to face challenges, the overall trajectory remains positive as the nation continues to build resilience in its post-pandemic economy.
By LACHLAN SHYVES EDDIE
Solomon Star, Honiara