Although gross domestic product (GDP) growth halved last year in the Solomon Islands, the Central Bank of the Solomon Islands’ (CBSI) 2012 annual report, released last week, makes encouraging reading.

Credit: Solomon Airlines

The Solomon Islands economy grew by 4.8% in 2012, the report says, with all sectors except for agriculture contributed positively to the overall growth.

‘However, growth…was significantly lower than the 10.6% [registered] in 2011,’ according to Central Bank Governor Denton Rarawa.

Highlights include:

• International trade bounced back from a deficit in 2011 to record a surplus of $360 million in 2012, thanks to robust growth in export volumes.
• Log production was slightly above the previous year at 1.948 million cubic metres.
• Gold output rose to 67,819 ounces from 51,054 ounces in 2011.
• Output in the fishing industry increased on the back of strong prices and doubled throughput at the main Noro cannery.
• Agriculture weakened due to lower global commodity prices, with export receipts for the three agricultural commodities namely palm oil, copra and cocoa contracting by 30%.

The CBSI anticipates growth of 4.0% in 2013.

•  Business Advantage PNG’s recent economic update on Solomon Islands is available here.