Solomon Islands economy growing too slowly, CBSI warns, calling for urgent action to reach 5% growth target.
The Governor of the Central Bank of Solomon Islands (CBSI) has warned that the nation’s economy is moving far too slowly to meet the needs of its people, describing the current trajectory as “one step forward and two steps back.”
Speaking at a press conference following the launch of the 2025 CBSI Annual Report, the Governor confirmed that while there are signs of recovery, growth is not reaching the levels required for a developing nation.
He told media that for the Solomon Islands to effectively manage its growing population and infrastructure demands, the economy needs to be expanding at a rate of at least 5 per cent.
“We are one step ahead and two steps backwards in terms of our economy and it is a challenge that we are facing at the moment,” the Governor said. “While we are growing, it is not fast or broad enough to meet the needs of our people.”
The 2025 report shows the economy grew by 3.6 per cent during the year, a slight increase from the 3.0 per cent growth recorded in 2024. This marks a return to growth following the COVID-19 pandemic, which pushed the country into recession between 2020 and 2022.
However, in his speech, the Governor warned that at this current pace, the country may struggle to graduate from Least Developed Country (LDC) status as planned in 2027.
The Governor highlighted a significant structural challenge, noting that current growth is heavily dependent on a few specific areas.
“When we dig deeper, it becomes clear why,” he said. “Strip out mining, and our 3.6 per cent growth falls to around 2.8 per cent for 2025 and 2026. This highlights that our growth is still narrow-based and too concentrated.”
The gains seen in 2025 were primarily driven by mining and construction, alongside improvements in agriculture, communications, and transport. The report also noted that inflation dropped significantly to 1.6 per cent, while foreign reserves remained at healthy levels.
The Central Bank is now calling for a “big push” scenario to lift growth to the 5 per cent target. This would require coordinated and deliberate action across all sectors rather than small, incremental adjustments.
In his statement before the launch of the report, the Governor emphasised that being “fit for the times” requires an economy that is both inclusive and resilient.
“Inclusive growth without resilience will only lift people out of poverty, but leaves them vulnerable to shocks,” he said. “Similarly, resilient growth without inclusiveness only protects systems and assets, but still widens inequality and social tension.”
He noted that the “big push” would require the private sector to innovate, the government to enable, and every citizen to see themselves as part of the transformation.
“The challenge before us is clear: we must not just grow but do things differently to grow,” the Governor said. “We must build an economy that is more inclusive, more resilient, and more sustainable. In short, we need growth that is fair, durable, and future-ready.”
On the global stage, the economy grew by 3.4 per cent. The report noted that the impact of international trade tariffs was less severe than first feared, with global inflation easing to 4.1 per cent.
While the Solomon Islands’ economy gained some momentum in 2025, the Central Bank maintains that bold, transformational change is the only way to deliver the inclusive growth the country requires.
