Solomon Islands Economy
Is Solomon Islands a wealthy country?
The Solomon Islands, a Pacific island nation, has been experiencing economic growth but faces challenges related to infrastructure, governance, and external shocks.
Key Economic Indicators:
GDP Growth: The Solomon Islands have seen modest economic growth in recent years, driven by sectors such as agriculture, fisheries, forestry, and mining. Tourism and services also contribute to the economy.
Agriculture and Fisheries: Agriculture, including subsistence farming and cash crops, plays a significant economic role. The fishing industry is crucial for both domestic consumption and export.
Forestry and Logging: The Solomon Islands export timber and logs, contributing to government revenue. However, concerns about sustainable forestry practices and their environmental impact have been raised.
Mining: The mining sector, particularly the extraction of minerals like gold and bauxite, has contributed to economic activity and export earnings.
Tourism: The tourism industry has growth potential, given the country's natural beauty and cultural attractions. However, limited infrastructure and transport connectivity have affected its development.
Challenges and Issues:
Infrastructure Deficiency: Limited infrastructure, including transportation and energy, challenges economic development. Improvements in these areas are crucial to support various economic sectors.
Governance and Corruption: Governance issues, including concerns about corruption, have been raised. Strengthening governance structures is essential for sustainable economic development and attracting foreign investment.
Vulnerability to External Shocks: The Solomon Islands are susceptible to external shocks, including natural disasters (cyclones and earthquakes) and global economic fluctuations. These events can impact critical sectors like agriculture and tourism.
Youth Unemployment: Like many developing nations, the Solomon Islands face challenges related to youth unemployment. Creating opportunities for young people and fostering skill development is essential for long-term economic stability.
Government Initiatives
Development Plans: The government has implemented development plans to foster economic growth, reduce poverty, and address infrastructure challenges. These plans often focus on diversifying the economy.
Foreign Aid and Assistance: Foreign aid and assistance, particularly from regional partners and international organizations, support development projects and address economic challenges.
Natural Resource Management: Efforts are being made to ensure sustainable management of natural resources, especially in the forestry and fisheries sectors, to balance economic development with environmental conservation.
Solomon Islands Economy Data
What is the GDP of Solomon Islands?
| Currency Name and Code | Solomon Island Dollar (SBD) |
| GDP - Gross Domestic Product (PPP) | $1,710,000,000 (USD) |
| GDP - official exchange rate | $1,205,000,000 (USD) |
| GDP - real growth rate | 3.3% |
| GDP Per Capita | $2,000.00 (USD) |
| GDP by Sector- agriculture | 51.2% |
| GDP by Sector- Industry | 10.2% |
| GDP by Sector- services | 38.7% |
| Inflation Rate | 6.3% |
| Labor Force | 202,500 |
| Labor Force By Occupation- agriculture | 75% |
| Labor Force By Occupation- industry | 5% |
| Labor Force By Occupation- services | 20% |
| Fiscal Year | calendar year |
| Annual Budget | $49,700,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | 2.5% |
| Taxes and other revenues - percent of GDP | 39.8% |
| Major Industries | fish (tuna), mining, timber |
| Agriculture Products | cocoa beans, coconuts, palm kernels, rice, potatoes, vegetables, fruit; cattle, pigs; timber; fish |
| Exchange Rate per US Dollar | Solomon Islands dollar (SBD) |
| Commercial Bank Prime Lending Rate | 11.2% |