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Logging is the largest formal-sector and source of employment in the Solomon Islands after government.
Finance Minister Hon. Harry Kuma revealed this in his 2020 budget speech in Parliament.
He said currently the logging sector accounts for; 20 per cent of Government domestic sourced revenue.
“Logging export duties are a key source of revenue to Government. The reduction in logging activity will therefore place some pressure on Government finances.
“60 per cent of exports and 32 per cent of total foreign exchange receipts. Reduced logging activity will place pressure on Solomon Islands’ ability to earn sufficient foreign exchange to pay for the current levels of imports and will require increased attention to develop alternative export sectors; and
“Around 5000 jobs. Logging is the largest formal-sector source of employment in the Solomon Islands after Government. Loss of these jobs will have flow-on impacts throughout the economy.”
He said growth in logging sector contracted by -12.5 per cent between 2018 and 2019 in annual growth terms.
“It is estimated to further contract on average at -7 per cent until 2024. Hence, growth drivers will primarily occur within the productive sectors, including agriculture as well as resources sectors which includes major projects such as the recommencement of operations at Gold Ridge Mine. Also, outside of resource and productive sector, services sector have acted as a reliable growth driver as well.
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