Economic Analysis - Growth To Be Supported By Infrastructure And Tourism - MAY 2018
BMI View: Economic activity in the Solomon Islands is likely to expand at a reasonable pace over the course of 2018, and we forecast real GDP growth to come in at 3.0% (compared with an estimate of 3.5% in 2017). Growth will be supported by ongoing developments in the construction sector, steady tourism arrivals, and loose monetary conditions due to the central bank's accommodative monetary policy.
We continue to expect the Solomon Islands' real GDP to expand at a reasonable pace over the coming quarters, with our 2018 growth forecast coming in at 3.0% (versus an estimate of 3.5% in 2017). In our view, the Pacific island-nation's economy will likely be supported by continued development in the construction sector and a steady stream of tourism arrivals over the coming quarters. The accommodative monetary policy that has been put in place by the Central Bank of Solomon Islands ( CBSI) will also act as a support for economic activity.
Infrastructure Investments Positive For Development