Solomon Islands
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Expenditures Relating to Pacific Games and General Elections Need to be Well Controlled

An International Monetary Fund (IMF) team led by Mr. Masafumi Yabara visited Solomon Islands during February 8 to 21 to hold discussions on the 2023 Article IV Consultation.

Article IV Consultations is the IMF’s attempt to assess each country’s economic health and to forestall future financial problems.

At the conclusion of the visit, Mr. Yabara stated that expenditures related to the Pacific Games and the general elections need to be well controlled to minimize the crowding out of other essential spending.

He says public investment projects should be phased in line with the economy’s absorptive capacity and accompanying financing arrangements need to be prudently negotiated.

“The economy remains subject to downside risks, in particular the risks of a resurgence of the pandemic and natural disasters.

“Lower-than-expected support from development partners or unsuccessful bond issuance in the shallow domestic market could hinder budget implementation.

“Further increase in global commodity prices, as well as mismanagement of infrastructure projects and their financing, would disturb the recovery.

“Other downside risks include political instability in the runup to the general elections and rises in geopolitical tensions,” said Mr. Yabara.