14 May 2009

Central Bank of Solomon Islands warns economic crisis will impact country

11:12 am on 14 May 2009

The Governor of the Central Bank of Solomon Islands warns the current global financial crisis will impact heavily on the country's economy.

Speaking at the launch of the CBSI's Annual Report for 2008 yesterday Denton Rawara said Solomon Islands isn't immune to the adverse effects of the global economic crisis.

He says export receipts will fall as international demand for export commodities shrinks along with the drop in export prices.

The Solomon Islands Broadcasting Corporation reports him saying the loss in foreign exchange for the country will impact on foreign reserves and result in a drop in Government revenues and loss of income to firms and individuals.

Denton Rarawa says when this happens on a wider scale it leads to rising unemployment and other undesirable social consequences.