19 Oct 2010

World Banks says Solomons economy on rebound

6:51 pm on 19 October 2010

The World Bank says the Solomon Islands economy has rebounded after a slump last year, and will grow up to four percent this year.

Last year, the economy grew by just point 92 of a percent.

In a report, the Bank says the growth is mainly due to increased log demand, better prices for fish and copra, and an increased demand for cocoa and palm oil.

But it says future growth remains uncertain.

The Bank's economics and governance specialist, Tobias Haque, emphasised the need to continue diversifying the economy by providing a better environment for business.

He also highlighted key reforms promised by the new government, specifically its commitment to the Extractive Industries Transparency Initiative.

Mr Haque says this will increase transparency within the mining industry and help spread the benefits to more Solomon Islanders.

He also noted the value of continuing efforts to improve essential economic infrastructure, such as transport and telecommunications, and ensuring the efficient operation of the water and electricity utilities.