ADB SEES LITTLE SIGN OF SOLOMONS ECONOMIC GROWTH

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HONIARA, Solomon Islands (SBIC, May 5) - The Asian Development
Bank says lack of data constrains a credible analysis of future trends for
Solomon Islands.

In its latest economic outlook, the bank said only a modest
economic recovery is forecast for 2003.

It said that continued growth of exports of timber, fish, copra,
and cocoa are projected to be the mainstay of economic activity this year.

However, the bank said the risks that threaten growth are
clearly high given the precarious fiscal situation and the recent record of the
Government, political instability, and the uncertain outcomes for public
security.

The more likely scenario is that the economy will continue to
experience a fiscal crisis in 2003, the ADB said.

Although there is obviously considerable uncertainty about the
outlook for 2004, it is likely that the current weakness will continue.

Over the medium and longer term, the authorities will need to
secure fiscal surpluses for a long period until arrears have been paid off and
debt has reached more sustainable levels.

May 5, 2003

Solomon Islands Broadcasting Corporation:
http://www.sibconline.com.sb

 

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