16 Dec 2014

Solomons economy expected to recover from slump

9:31 am on 16 December 2014

The Central Bank of Solomon Islands says the economy will recover slightly from a slump brought on by the April floods.

The Governor Denton Rarawa says the bank had predicted 3.4 percent growth in 2014 but cut it drastically to below 1 percent after the floods.

Mr Rarawa says there has been a positive turnaround since then with GDP growth of up to 2 percent expected by the end of the month.

He says the new government will need to adopt policies that assist the economic recovery and he says there is an urgent need to identify and encourage new sources of growth.

"The challenge for the new government is to ensure there's growth in the economy and that growth must be inclusive. It generates new jobs for the lot of young people that come out from schools and join the work force."

Central Bank Governor Denton Rarawa.

A boy among the rubble left by flooding in the Solomon Islands.

A boy among the rubble left by flooding in the Solomon Islands. Photo: Save the Children