Solomon Islands has an opportunity to turn its economic recovery into more jobs, higher incomes and greater resilience to future shocks, according to the World Bank Group.
The World Bank’s latest report “Solomon Islands Economic Update, Harnessing the New Roots of Growth”, says this will require stronger management of public finances, greater investment in agriculture and fisheries, and new sources of economic growth beyond mining.
The report says the economy has recovered after contracting for three consecutive years from 2020 to 2022.
However, it warns that the recovery remains narrow and is being driven largely by mining, remittances and public infrastructure spending.
These sources of growth have created relatively few jobs, delivered uneven benefits to communities and left the economy vulnerable to future shocks.
“Solomon Islands is at an important turning point,” said Bernard Harborne, World Bank Group Resident Representative for Solomon Islands and Vanuatu.
“The country is benefiting from new sources of growth, particularly mining, but long-term prosperity will depend on how effectively resource revenues are managed and invested,” he added.
Harborne said stronger public finances and greater investment in productive sectors could create jobs, support local businesses and improve living standards.
The Economic Update forecasts economic growth of 2.8 percent in 2026, driven mainly by mining and public investment.
Mining accounted for more than half of Solomon Islands’ exports in 2025, compared with just four percent in 2019.
But the report notes that mining requires large investments while creating relatively few jobs.
It warns that without strong oversight and careful investment of mining revenues, the benefits may not spread across the wider economy.
Creating jobs for young people is particularly urgent.
Around 9,000 young Solomon Islanders enter the workforce each year, while only about 2,100 formal jobs are created.
The report also highlights growing pressure on the Government’s finances.
Cash reserves now cover less than one month of government spending, while public debt reached 30 percent of GDP in 2025.
Declining grants, higher fuel costs and climate-related disasters are adding further pressure.
The impact of Cyclone Maila has further highlighted the need to rebuild financial reserves and prepare for future crises.
The report identifies two main priorities: strengthening public finances and broadening the economy to create more jobs and incomes.
It recommends stronger oversight of the mining sector, improved collection of government revenue, implementation of planned tax reforms, greater investment in productive sectors and improved access to finance for businesses.
The report identifies significant opportunities in higher-value agriculture, fisheries, tourism, renewable energy and private-sector development.
It says investment in infrastructure, better access to finance and a more predictable business environment could help these sectors grow and create jobs across the country.
As Solomon Islands approaches its 50th anniversary of independence, the World Bank says the country has an important opportunity to build a more diverse, resilient and job-rich economy.
With the right reforms and investments, it says Solomon Islands can turn its natural resources, young population and untapped economic potential into more opportunities and better living standards for future generations.
