7 Apr 2014

Shock followed by growth forecast for Solomon Islands economy

1:58 pm on 7 April 2014

A regional economist says the Solomon Islands economy is likely to suffer following last week's devastating floods but growth should rebound in the medium term.

Emma Veve of the Asian Development Bank says damage to the port in the capital Honiara and roads in and out are a concern for the country's key logging industry.

The ADB had earlier projected a slight pick up in growth to three percent for this year after last year's moderated growth due to lower earnings from logging, agriculture and mining.

Ms Veve says an infrastructure rebuild should see a return to growth in six to eighteen months.

"Certainly in the immediate aftermath of the disaster there's a shock to the economy, a negative shock. You see a decline in agricultural production, you see job losses. Government needs to come in fairly quickly and start to provide food for people, help people start rebuilding homes."

A principal economist with the Asian Development Bank, Emma Veve