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Economic

IMF warns of slower growth and higher inflation for Solomon Islands

IMF cautions that Solomon Islands growth may slow in 2026 with rising inflation and persistent fiscal deficits.

The International Monetary Fund has warned that the Solomon Islands economy, while estimated to have grown by 3.5 percent in 2025 driven by agriculture and gold production, is projected to slow to 2.7 percent growth in 2026 with inflation rising to an average of 4.8 percent. The IMF cites ongoing global instability, including the conflict in the Middle East, as a key external risk that could dampen economic activity and raise inflation further. Domestically, fiscal deficits are expected to remain elevated, and the IMF stresses the need for stronger fiscal discipline, realistic and fully financed budgeting, and measures to rebuild government liquidity buffers to mitigate downside risks.
Status
active
Location
Solomon Islands
Date added
2026-03-31 04:49 UTC
Added by
manosantarcticaoceaniaapdrmis
Last updated
2026-03-31 04:49 UTC
Source
https://www.solomontimes.com.sb
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