8% growth rate since 2012

The country has achieved an average growth rate of 8 per cent over the last five years.

Treasury Secretary, Dairi Vele, said this today at the 2017 Leaders Summit when presenting an overview of the Governments economic performance over the last five years.

Vele said the Government must be commended for achieving this growth between 2012 and 2016.

He added inflation through the same period has been on an average of 5 per cent which was manageable and within the accepted range  for businesses to operate.

The revenue outlook however remains low and will only begin to increase once major investments or projects kick in.

The secretary explained the International Monetary Fund (IMF) report of 2016 highlighted the need for reducing expenditure in the right areas which he says the Government has done.

“This administration took disciplined responses, very tough decisions to make sure the future of Papua New Guinea is safe and that there is opportunity for Papua New Guinea going forward.

“The IMF also says that the plan for 2017 is prudent and lays the foundation for fiscal consolidation and debt sustainability. Now prudent in this context is a technical term. It doesn’t just mean it’s a good plan, it means it’s a responsible plan, it means it’s an efficient plan and it means it’s an appropriate plan.

“So is the plan correct for 2017? Yes. What we all have to focus on as a team as many of you go to elections and come back is that we deliver according to that plan. There is a positive approach to revenue, as Prime Minister said, without increasing taxes we are trying to look at all there’s little areas and of course we are a couple of projects away from turning our economy around,” Vele said.

Cedric Patjole