Solomon Islands government obtains $440 million in grants and concessional loans at a time when reportedly the country is heading towards a recession.
Solomon Islands Finance Minister, Harry Kuma has announced the government’s stimulus package in a bid to boost the national economy and as what was largely predicted, the ’package’ has four parts to it including soft medium-term relief for businesses and the public, financial injection into the productive and resource sectors, equity investment into specific public and public/private companies and medium to long-term support for economic growth
Mr. Kuna said had earlierr said, “Alongside the government's contribution, funding for the economic stimulus package would be supported by the country's donor partners.”
According to a brief news story in today’s edition of the Island Sun newspaper, it appears the government has secured a total of $440 million in grants and concessional loans from development partners and donors to sustain the economy during the downward trend caused by the global covid-19 pandemic.
However, like the situation in many world countries, France being one of the latest heading towards recession, the Central Bank of Solomon Islands has forecast the country's economy is heading into a recession.
In a statement released Wednesday evening, from which I quote, the Bank said the speed and extent of the global impact of the Covid-19 pandemic has forced a review of its near-term growth outlook for Solomon Islands.
Statement from the CBSI
“The CBSI is predicting a significant decline in the country's GDP of between negative 3 and 5 percent in 2020 with the economy moving into a recession from the second quarter.
“It said this is being driven by disruptions to travel and supply chains as well as the uncertainty in global demand for the country's exports.
“The bank said it is closely monitoring the situation and is working closely with the government to mitigate the impact of the Covid-19 pandemic on the country.
“It said while containment is the priority at the moment the country should start planning how to kick-start its recovery once the pandemic is over.”