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EIU Solomon Islands

Overview

Domestic political stability is likely to remain fragile in 2010-11, as political allegiances will continue to be fluid. The prime minister, Derek Sikua, will need to maintain the support of his 24 ministers and also a number of backbenchers in the 50-member parliament, as he could face further no-confidence motions in the coming months. The government has an extensive political reform agenda, but progress has stalled, and the most important reforms are unlikely to be implemented before the next parliamentary election, which is due in April 2010. The economy is dependent on logging, but experts claim that the industry cannot survive for more than four years at current rates of production. The Asian Development Bank expects the economy to grow by just 2.6% in 2010, after stagnating in 2009. The country will continue to run a current-account deficit in addition to its fiscal deficit. Foreign aid will continue to flow into the Solomon Islands throughout 2010-11, helping to offset concerns that government spending cuts will damage progress on alleviating poverty.

Key Reports Available for Solomon Islands
  • Country Report
  • Country Profile
  • Basic Data

    Land area
    27,556 sq km
    Population
    409,042 (1999 national census); 496,000 (Asian Development Bank, July 2006 estimate)
    Major islands
    Guadalcanal, Choiseul, Santa Isabel, New Georgia, Malaita, San Cristobal
    Capital
    Honiara (population 49,107 in 1999), on Guadalcanal
    Climate
    Tropical, maximum temperature 31°C; cooler season April to November. From November to April higher temperatures, occasionally accompanied by cyclones
    Weather in Honiara
    Average rainfall 2,290 mm per year
    Languages
    English (official language), Pidgin, 87 local languages also in use
    Measures
    Imperial and metric
    Currency
    Solomon Islands dollar (SI$)=100 cents. Average exchange rate in 2007: SI$7.65:US$1. Exchange rate on August 20th 2008: SI$7.70:US$1
    Fiscal year
    Calendar year
    Time
    11 hours ahead of GMT
    Public holidays
    January 1st-2nd (New Year’s Day); March 21st-24th (Easter); June 9th (Queen’s Official Birthday); July 7th (Independence Day); December 25th (Christmas Day); December 26th (National Day of Thanksgiving)


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