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SINSO releases GDP estimates for Solomon Islands from 2021-2024, showing economic recovery post-pandemic with sector-specific growth
The Solomon Islands National Statistics Office (SINSO) has officially released new Gross Domestic Product (GDP) estimates for the years 2021 to 2024. These estimates, presented in both current and constant 2012 prices, offer a comprehensive view of the country’s economic performance and recovery, with a detailed breakdown by economic activity and expenditure components. The data also continues the GDP time-series from 2003.
The latest report highlights the economic trajectory of Solomon Islands in the aftermath of the COVID-19 pandemic, showing the impact of external shocks and the gradual recovery of the economy from 2023 into 2024. The estimates were compiled using the production and expenditure approaches, in line with the United Nations System of National Accounts.
Economic Trends: From Contraction to Recovery
The GDP estimates reveal a challenging economic period in 2021 and 2022, with the country’s economy continuing to contract following the recession that began in 2020. The real GDP growth rates were negative for three consecutive years, with a slight decline of -0.2% in 2021 and a further contraction of -2.6% in 2022. This slowdown is largely attributed to the lingering effects of the COVID-19 pandemic, coupled with the Honiara riots in late 2021.
However, the economy showed signs of recovery in 2023, with a positive real growth rate of +2.8%, and is expected to expand by +3.0% in 2024. Economic activity in nominal terms was reduced by $700 million in 2021 and 2022 but is forecasted to rebound by over $1.4 billion from 2023 to 2024. Real GDP was similarly reduced by $300 million in the first two years, but it is projected to grow by $600 million as the economy recovers.
Sector-Specific Growth
The data also highlights notable growth in certain sectors of the economy:
- Industry Sector: The mining, manufacturing, electricity, water, and construction industries had a strong and positive impact on the economy, despite the challenges of the pandemic and political unrest. Real growth in the industry sector was +3.1% in 2021, +2.1% in 2022, +12.5% in 2023, and is projected to reach +8.3% in 2024. Growth in the construction industry has been a key driver, spurred by infrastructure projects related to the 2023 Pacific Games and other national developments.
- Mining Industry: After a difficult period, the mining sector saw a dramatic recovery in 2023, growing by 303.2%. However, growth is expected to slow to 48.2% in 2024.
- Primary Sector (Agriculture, Fisheries, and Forestry): The primary sector faced continued challenges, particularly in forestry, which saw a decline of -5.3% in 2021 and -11.3% in 2022. The fisheries industry also experienced negative growth in 2022 and 2023. Agriculture is slowly recovering, but its contribution to GDP remains subdued.
- Services Sector: The services sector experienced modest negative growth in 2021 and 2022, but is showing signs of recovery, with positive growth expected in 2023 and 2024.
Expenditure Components
The report also outlines trends in national expenditure. Household final consumption saw strong positive growth, with increases of +12.7% in 2021, +8.6% in 2022, +11.9% in 2023, and +8.3% in 2024. There was also strong demand for imports of goods and services, which increased by +31.1% in 2021, +17.9% in 2022, +30.2% in 2023, and is expected to increase by +14.2% in 2024.
Capital formation (Gross Fixed Capital Formation, GFCF) saw a significant jump in 2021 (+27.3%) but was followed by a sharp decline in 2022 (-16.3%).
Conclusion
The release of these GDP estimates provides valuable insights into the ongoing economic recovery in the Solomon Islands. As the country continues to navigate post-pandemic challenges and prepare for future growth, these figures will be crucial for policymakers, businesses, and stakeholders alike. For further information, the full report can be accessed through SINSO’s Statistical Bulletin 15/2025 on their official website Below. ⬇️
SOURCE : SINSO Press release
