20 Nov 2004

Solomons PM optimistic about economic forecasts

9:09 am on 20 November 2004

The Prime Minister of Solomon Islands has told development partners that the country has made history, in that its foreign reserves have equalled seven months of import cover.

Sir Allen Kemakeza says the figures exceed the minimum three-month threshold and gross domestic figures, and show more economic activity this year.

Sir Allen says they show an optimistic forecast for much higher growth at the end of the year.

He says these are unexpected achievements and come on the back of good performances in productivity, and increased overseas development assistance.

The Prime Minister says in terms of government finances, remarkable achievements have been witnessed with the budget performing extremely robustly in 2003-2004.

Sir Allen attributes this to tighter expenditure control and better revenue collection.

He has told development partners that the tough measures have led to the budget recording surplus positions for the two years - adding the outlook remains positive for 2005.