THE Solomon Islands economy is projected to remain steady with a growth rate of 2.7 percent in 2026, driven by stronger performance across mining, fishing, agriculture, and business services.
Minister of Finance and Treasury, Rexson Ramofafia, presented this outlook when tabling the 2026 Appropriation Bill 2025 in Parliament on Monday 24th November.
He said the mining sector is expected to lead the expansion, supported by increased gold and nickel production and improving commodity prices.
“The fishing industry is forecast to rebound, aided by favourable weather and ongoing export demand. Agriculture too is poised for growth, with better yields expected in palm oil, copra, and cocoa,” he said.
Ramofafia added that this progress will be strengthened by higher participation in the informal sector, improved market access, and continued modernization efforts.
Business services, he said, are also set to expand, driven by rising domestic demand and major infrastructure projects including road construction, the Tina Hydro project, and new private-sector investments.
“Together, these sectors will provide a more balanced outlook for 2026, helping to cushion the continued decline in the logging industry and ensuring our economy remains on a stable path,” he said.
Turning to prices, headline inflation is projected to ease to between 3.5 and 4.0 percent in 2026—a welcome reduction from the high levels of 5.0 to 6.0 percent recorded between 2022 and 2024.
Ramofafia said this reflects more stable economic conditions and the gradual fading of external shocks that previously pushed up prices.
A key driver of the easing inflation is the stabilization of food and energy costs, which had surged due to global supply disruptions and severe weather events.
Core inflation, excluding fuel and food, is expected to remain subdued at 2.0 to 3.0 percent.
Ramofafia said the normalization of inflationary pressures is encouraging, as it will help ease the cost of living and create a more favourable environment for investment and long-term growth.
By EDDIE OSIFELO
Solomon Star, Honiara
