SI economy progressing positively: CBSI report

Solomon Islands economy remains positive in the third quarter of this year. In its quarterly report, the Central Bank of Solomon Islands (CBSI) says this is due to the strong performance of the global economy which had resulted in increased activities in the local economy.

Deputy Governor of Central Bank Denton Rarawa says there was significant increase in the production output in all export commodities except copra . This gave a 25 percent increase in the overall production index.

However, Mr Rarawa says that this was still lower compared to the level of production output over the same period last year. He says while this may raise concerns for economic growth, the services and distributions sector which is expected to increase will offset lower commodity production levels.

Mr Rarawa says that as a result of the positive economic growth, money supply also rose to 7 percent to reach 968-million dollars in the third quarter. This has also resulted in the increase in the country's foreign reserve to reach 775 million dollars which represents five months import cover. Mr Rarawa says domestic credit also rose by 19 percent reaching 534-million dollars.

Source: SIBC