World Bank says Solomon Islands can create more jobs and incomes through stronger public finances and economic diversification.
HONIARA, 18 August 2026 – Solomon Islands has an opportunity to turn its economic recovery into more jobs, higher incomes and greater resilience to future shocks, according to the World Bank Group’s first Solomon Islands Economic Update.
The report, “Harnessing the New Roots of Growth,” says achieving this will require stronger public financial management, greater investment in productive sectors such as agriculture and fisheries, and new sources of economic growth beyond mining.
The Economic Update finds that Solomon Islands’ economy has rebounded after contracting for three consecutive years between 2020 and 2022. However, the recovery remains narrow, driven largely by mining, remittances and public infrastructure spending.
The report warns that these sources of growth have generated limited employment, provided uneven benefits across communities and left the economy vulnerable to future economic and climate-related shocks.
World Bank Group Resident Representative for Solomon Islands and Vanuatu, Bernard Harborne, said the country was at an important turning point.
“Solomon Islands is at an important turning point. The country is benefiting from new sources of growth, particularly mining, but long-term prosperity will depend on how effectively resource revenues are managed and invested.”
He said stronger public finances and increased investment in productive sectors could help create jobs, support local businesses and improve living standards.
The Economic Update projects economic growth of 2.8 percent in 2026, driven mainly by mining and public investment.
Mining accounted for more than half of Solomon Islands’ exports in 2025, compared with just four percent in 2019. However, the report notes that mining requires significant investment while creating relatively few jobs.
It warns that without strong governance and careful reinvestment of resource revenues, the benefits of mining may not spread widely across the economy.
JOB CREATION REMAINS A MAJOR CHALLENGE
The report highlights the need to create more employment opportunities for Solomon Islands’ growing young population.
Around 9,000 young Solomon Islanders enter the labour force each year, while only about 2,100 formal jobs are created, creating a significant gap between the number of people seeking employment and available formal opportunities.
The World Bank says expanding sectors such as agriculture, fisheries, tourism, renewable energy and private enterprise could help address this gap.
FISCAL PRESSURES
The Economic Update also highlights growing pressure on the Government’s finances.
Cash reserves currently cover less than one month of government spending, while public debt reached 30 percent of gross domestic product in 2025.
Declining grants, higher fuel costs and climate-related shocks are adding further pressure to public finances.
The impact of Tropical Cyclone Maila has further highlighted the need for Solomon Islands to rebuild financial buffers and strengthen its preparedness for future crises.
TWO PRIORITIES FOR ECONOMIC TRANSFORMATION
The report identifies two broad priorities for Solomon Islands.
The first is to rebuild public finances so the Government has sufficient resources to respond to economic and climate-related shocks.
The second is to broaden the economy to create more jobs and increase incomes for Solomon Islanders.
Key recommendations include strengthening mining governance and revenue collection, implementing planned tax reforms, investing in productive sectors and expanding access to finance for businesses.
The World Bank also identifies significant opportunities in higher-value agriculture, fisheries, tourism, renewable energy and private sector development.
It says investment in infrastructure, improved access to finance and a more predictable business environment could help unlock these sectors and generate employment opportunities across the country.
As Solomon Islands approaches the 50th anniversary of independence, the World Bank says the country has an opportunity to build a more diverse, resilient and job-rich economy.
With appropriate reforms and investment, the report says Solomon Islands can convert its natural resources, youthful population and untapped economic potential into greater economic opportunities and improved living standards for future generations.
SOURCE// WORLD BANK REPORT
