30 Sep 2014

Higher growth expected for Solomons economy

9:14 am on 30 September 2014

The Central Bank of Solomon Islands says the economy is growing more strongly than it had anticipated after the massive flooding disaster in April.

The growth is expected to come from the agriculture, fisheries and communications sectors.

There has also been an increase in construction activity.

To support the growth, the Bank has changed its monetary policy from neutral to accommodative.

It will allow the currency to float with a global basket of currencies to allow for more balanced growth in trade.

The Bank says the outlook for gross foreign reserves is positive and expected to rise and while inflation will be just under six percent, depending on the impact of conflicts in regions such as the Middle East.