The PNG economy is projected to grow by 4.3 per cent in 2016 driven by a rebound in the mining and non-mining sectors after the disappointing performance in 2015.
On the other hand, the oil and gas sector, which provided a significant boost to the overall growth in 2014 and 2015, is expected to revert to the trend of natural decline after absorbing the impact of the first LNG production in 2014 and 2015 respectively.
Further supporting growth in 2016 is the anticipated improvement in the global economy.
This will assist commodity prices to improve and stimulate activities in the domestic economy.
Other factors also considered likely to boost activity in 2016 include the preparations for the 2018 APEC meetings.
The total non-mining GDP is expected to grow at 3.4 per cent in 2016 from a growth of 2.4 per cent in 2015, driven by a rebound in the non-mining sector.
Meanwhile, the government passed the 2016 budget of K14.2 billion yesterday (Nov 3).