Solomon Islands

Quick Facts

🇸🇧
Capital:
Honiara
Official Language(s):
English
Currency:
Solomon Islands dollar ($)
Population:
686,878

Overview

Solomon Islands, also known simply as the Solomons, is an island country consisting of six major islands and over 1000 smaller islands in Melanesia, part of Oceania, to the northeast of Australia. It is directly adjacent to Papua New Guinea to the west, Australia to the southwest, New Caledonia and Vanuatu to the southeast, Fiji, Wallis and Futuna, and Tuvalu to the east, and Nauru and the Federated States of Micronesia to the north. It has a total area of 28,896 square kilometres, and a population of 734,887 according to the official estimates for mid-2023. Its capital and largest city, Honiara, is located on the largest island, Guadalcanal. The country takes its name from the wider area of the Solomon Islands archipelago, which is a collection of Melanesian islands that also includes the Autonomous Region of Bougainville, but excludes the Santa Cruz Islands.

Institutional Framework

The strength of a country's institutions directly impacts its economic development and stability. Strong institutions reduce uncertainty, protect property rights, and enable efficient markets through:
  • Rule of law and contract enforcement
  • Control of corruption
  • Government effectiveness and regulatory quality

* Indicators normalized to 0-100 scale

Economic Structure

The composition of an economy reveals its strengths, vulnerabilities, and potential for growth. Understanding the balance between sectors (agriculture, industry, services) and their sophistication helps assess economic resilience and development opportunities.

Economic Health & Trade

Economic Scale & Power

An economy with $1,522,794,913.091B(2021) GDP, showing moderate growth at 2.6%(2021). Emerging economy with development potential.

GDP Growth
2.6%(2021)
GDP PPP
$1,920,525,664.391

Economic Structure

Economic structure shows 46.7%(2021) in services, 18.1%(2021) in industry, and 35.0%(2021) in agriculture. Significant agricultural sector.

Economic Health & Trade

Economic health indicators show 0.9%(2021) unemployment and -0.1%(2021) inflation. Trade profile with 27.2%(2021) exports and 39.5%(2021) imports as % of GDP.

Unemployment
0.9%(2021)
Inflation
-0.1%(2021)
Exports/GDP
27.2%(2021)
Imports/GDP
39.5%(2021)

Innovation & Competitiveness

Innovation capacity determines a country's ability to compete in the global knowledge economy. Key indicators like R&D investment, patent applications, and high-tech exports reveal the potential for sustainable economic growth and value creation.

High-Tech Exports

N/A

% of manufactured exports

ICT Exports

N/A

% of total goods exports

Digital Adoption

47.3

% of population using internet

Mobile Connectivity

67.0

Subscriptions per 100 people

Manufacturing Value

9.7

% of GDP

International Position

A country's integration into global markets affects its economic opportunities and risks. Trade relationships, financial flows, and geographic advantages or constraints shape its development trajectory and resilience to external shocks.

Financial & Trade Geography

Trade Profile

Trade represents 66.64%(2021) of GDP, with a trade balance of -12.29%(2021).

FDI Inflows
1.83%(2021)
FDI Outflows
0.32%(2021)

Financial Security

External Debt

28.00%(2021)

Foreign Reserves

$0.69B(2021)(12.7 months of imports)

Supply Chain & Technology

Technology Trade

ICT Imports
N/A
High-Tech Exports
N/A

Economic Structure

Manufacturing
9.67%(2021)
Services
46.70%(2021)

Trade Agreements & Dependencies

Trade Agreements

No major trade agreements

Critical Dependencies

    Growth Trajectory

    Understanding growth patterns helps predict future economic performance and development challenges. Key factors include productivity trends, investment levels, and structural transformation progress, which together determine long-term prosperity potential.

    Growth Potential Indicators

    Human Capital

    Education and workforce development

    14.2/100

    Trade Position

    International trade and competitiveness

    12.7/100

    Economic Structure

    Sectoral balance and sophistication

    27.0/100

    Demographics & Human Capital

    Demographics are fundamental to understanding a country's economic potential and challenges. The population structure influences everything from labor force availability to social security systems and public spending priorities.

    Demographics

    Population Overview

    Total population of 762,591(2021) with 2.4%(2021) annual growth. Median age is N/A with fertility rate at 3.983 births/woman(2021).

    Life Expectancy
    70.348 years(2021)
    Birth Rate
    29.785 per 1,000(2021)

    Age Structure

    Working-age population (58.3%(2021)) with youth at 38.1%(2021) and elderly at 3.7%(2021). Total dependency ratio: 71.7%(2021).

    Young Dependency
    65.4%(2021)
    Old Dependency
    6.3%(2021)

    Gender & Migration

    Population is 48.8%(2021) female and 51.2%(2021) male, with sex ratio of 1.07 males/female(2021) at birth. Net migration: 1,499(2021).

    Male Mortality
    183.014/1,000(2021)
    Female Mortality
    142.938/1,000(2021)

    Development Indicators

    Urban population growing at 4.2%(2021) annually, with 74.9%(2021) in rural areas. Literacy rate: N/A.

    Urbanization
    25.1%(2021)
    Infant Mortality
    16.2 per 1,000(2021)

    Population Structure

    The population pyramid visualizes the age and gender distribution, revealing crucial insights about economic sustainability. A balanced pyramid with a strong working-age population (typically ages 15-64) indicates greater economic potential, as this group supports both the younger and older generations through:
    • Labor force participation and productivity
    • Tax contributions to support social services
    • Innovation and economic growth

    An aging population (top-heavy pyramid) or youth bulge (bottom-heavy) can create demographic pressures on social systems and economic stability.

    Source: World Bank Development Indicators

    Security Context

    Security considerations fundamentally affect economic development and investment attractiveness. Both geographic factors and military capabilities influence a country's stability and its ability to protect economic interests and maintain sustainable growth.

    Geographic & Resource Security

    Food & Agriculture

    Arable land comprises 0.8%(2021) of territory, with 4.3%(2021) total agricultural land. Cereal yield: 1,899.8 kg/hectare(2021).

    Food Production Index
    101.58(2021)
    Cereal Production
    2,748.41 MT(2021)

    Energy Security

    Net energy imports at N/A of consumption. Renewable energy makes up 76.3%(2021) of total. Electricity access: N/A.

    Resource Rents
    N/A

    Water Resources

    Fresh water resources of 3,028 m³/capita(2021) per person. Annual precipitation: 90.112 mm(2021).

    Forest Area
    N/A

    Environmental Vulnerability

    58616.0%(2021) of population affected by climate disasters. Forest coverage at N/A providing natural buffer.

    Annual Rainfall
    90.112 mm(2021)

    Military & Security

    Military Capabilities

    Military expenditure at N/A of GDP. Armed forces personnel: 7,000,000(2021) ( N/A of labor force).

    Arms Exports
    N/A
    Arms Imports
    N/A

    Strategic Status

    Military Alliances

    No major military alliances

    Nuclear Status

    Non-Nuclear State

    Security Environment

    Recorded 1,000(2021) battle-related deaths.Refugee population: 53,018(2021)Internally displaced: 51,410(2021)

    Strategic Geography

    Strategic Features