The Central Bank of Solomon Islands (CBSI) has conducted an initial impact assessment over the damage to the economy caused by the recent unrest and riots in Honiara since Wednesday.
The findings have revealed that the loss to the local economy is estimated to be around $227 million at a minimum.Domestic economic activity, including employment, was significantly impacted with a broad contraction in the economy estimated for 2021.
This will see a reverse in the revised 0.4% growth projected for 2021. A complete picture of the contraction will be provided in the coming days.Honiara being the nation’s capital accounts for around 30% of the country’s overall GDP, and more than half of this was destroyed both by fire and by pillaging.
The sectors that were mostly impacted were the wholesale and retail, manufacturing, and services.A total of 56 buildings were burnt and looted; some buildings house more than one business. Jobs affected is estimated to be close to 1000 employees.In terms of fiscal operations, the Government is expected to lose, in the near term, around $36 million from tobacco excise taxes alone.