BY NED GAGAHE
Governor of the Central Bank of Solomon Islands (CBSI), Dr Luke Forau, says the country’s economy showed stronger momentum in 2025, but cautions that growth remains too concentrated in a few key sectors.
Speaking at the launch of 2025 annual report yesterday at Heritage Park Hotel, Forau revealed that the Solomon Islands economy expanded by 3.6 per cent in 2025, an improvement from 3 per cent in 2024.
He said the growth was largely driven by solid performances in mining, construction, agriculture, transport, and wholesale and retail sectors.
“The stronger growth reflects increased activity across key sectors, particularly mining and construction, which also supported demand for goods and transport services,” Forau explained.
However, the CBSI Governor said that the current growth pattern is not broad-based, highlighting a major structural challenge for the economy.
“Our growth is still narrow and heavily dependent on a few sectors, especially mining,” he said.
Forau warned that such dependence makes the economy vulnerable to external shocks, including fluctuations in global commodity prices.
“If we remove mining from the equation, overall growth would be significantly lower. This shows that we must diversify our economy and strengthen other sectors,” he added.
He emphasised the need for policies that promote inclusive and sustainable growth, ensuring that economic benefits are spread across all sectors and communities.
The CBSI Governor said moving forward, the country must focus on expanding agriculture, boosting value-added production, and strengthening emerging industries to reduce reliance on a single growth driver.
“While the economy is growing, it is not growing fast enough or broadly enough to meet our long-term development goals,” Forau stated.
He said that achieving a more resilient and inclusive economy will require coordinated efforts from government, private sector, and development partners.
Photo credit: Ned Gagahe
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