Solomon Islands: 2026 Article IV Consultation-Press Release; and Staff Report

Economic growth and the external position strengthened in 2025, supported by export‑led production in mining and agriculture. Further expansion of gold mining could boost growth and generate sizable fiscal revenues, if it is managed prudently with limited fiscal incentives. However, the country faces heightened risks from the war in the Middle East, while underlying fragilities, including weak state capacity and political instability, persist. Depleted government cash buffers, together with long‑standing weaknesses in public financial management (PFM) and governance, continue to constrain effective policy implementation.