Solomons Central Bank predicts positive growth for 2008

Governor of the Central Bank of Solomon Islands Rick Hou has said the country expects another positive outcome for 2008.

Mr Hou said based on the growth trend in recent years, and economic developments in the first four months of this year.

Launching the Bank's 2007 Annual Report today, Mr Hou said while no growth is anticipated in the forestry sector, he is confident that given the prevailing commodities boom, agricultural activities, particularly in palm oil products, will increase significantly.

He said in its 2008 Monetary Policy Stance, the Central Bank foreshadowed monetary developments would slow down but not subdued.

Mr Hou said the Bank will remain vigilant to developments in the main economic indicators outlined in the 2008 Monetary Policy Stance.

He said the bank will take appropriate action should the movements in any of these key economic indicators be inconsistent with the policy objectives.

Mr Hou said he is confident that the domestic banking system is capable of providing the catalyst for further private sector expansion and another positive year.

He said private sector credit expansion is therefore expected to continue on the back of a strong growth in domestic demand.

Source: SIBC