economy

Slower growth, better prospects for PNG

Additionally, strengthening the business environment to spur private sector development will also facilitate broad-based and inclusive growth in Papua New Guinea, according to a report released by the World Bank today.

The World Bank’s Papua New Guinea Economic Update: Slower Growth, Better Prospects, is the second in a series, and was launched in Port Moresby, providing an in-depth analysis of PNG’s economy, together with a special focus on developing PNG’s private sector as an engine of inclusive growth and jobs creation.

‘Strong signs of economic recovery’

Prime Minister Peter O’Neill says they expect this growth trend to continue into the next medium term.

Business houses at this morning’s Port Moresby Chamber of Commerce and Industry breakfast were told that the Government intends to ensure that the economy continues its steady growth over a long period of time.

Prime Minister Peter O’Neill also used the opportunity to reveal that Cabinet approved the 2019 budget yesterday.

“And that again shows a strong sign of recovery. The indications are very, very positive,” he said at the Hilton Hotel this morning.

Shangai flight to open economic opportunities: PM

The charter flight led by Prime Minister O’Neill with government delegation last Wednesday was used as a test flight by Air Niugini with the various NAC verifications.

Prime Minister Peter O’Neill said PNG must tap into the developments that is taking place around the world and China is an example to learn from.

He said it has been a privilege to see first-hand the dynamic developments and core initiatives of the Shanghai Free Trade Zone whilst visiting Administration of the Shanghai Free Trade Zone in the New District of Pudong last Friday.

PM confident on economic recovery

O’Neill told delegates at the 2nd Petroleum and Energy Summit in Port Moresby yesterday that though the shutdown of the PNG LNG Project will cost the Government a lot of money, they will recover.

PM O’Neill however said the partnership with development partners is very important as Government cannot work alone but go in partnership for a win-win situation for both parties.

He said the Government will be working closely with ExxonMobil and Oil Search for the reoperation of the PNG LNG Project.

Broaden PNG’s economy base

And Business Council of PNG President Robert Nilkare says the time to invest in agriculture is now.

Nilkare said agriculture is at the core of all Papua New Guineans and needed significant investment.

Speaking at the Prime Minister’s Back to Business Breakfast in Port Moresby, Nilkare said for too long the mineral sector has been relied on to bolster the economy.

He said while major centres of the country are moving towards technological advancements, the rural people still rely on the cash crop economy.

PNG recorded modest growth: Group

This is due to an increase in global commodity prices and production in the domestic mining industry, coupled with improved performance in the non-extractive sector.

“PNG’s economy grew by an estimated 2.2 percent in 2017, according to the 2018 budget tabled in Parliament on November 28,” reports the Group.

“While above the 2 percent annual growth rate recorded in 2016, the figure was below the 2.7 percent expansion forecast in the Treasury’s Mid-Year Economic and Fiscal Outlook, released at the end of June. 

Kina ‘peg’, FX shortage slowing growth

Westpac director and senior economist, Justin Smirk, said while there were positives to the introduction of the trading ban on the Kina, there were also implications.

Smirk said the current situation constrains local business expansion and creates a tightening in the Kina market.

Smirk said the decision to peg the kina in July 2014 ensured currency stability, prevented mass depreciation and created certainty in the Kina.

Kina to weaken: Economist

Westpac senior economist and director, Justin Smirk, said this during the Port Moresby Chamber of Commerce and Industry Business Breakfast in Port Moresby today.

Smirk said as global commodity prices remain stagnant and commodity currencies weakening, the likely effect would be the same for PNG.

He said PNG should now shift its focus to the essential areas of revenue generation and growth.

“Focus on what’s important to you and what you can do,” he told the business community.

Forex affected imports: Economists

They warned that lack of access to foreign exchange had become the “No 1 issue for business” and if prolonged, could cause PNG to face another “lost decade” of economic growth, similar to what happened in the 1990s.

The four economists presenting at the Development Policy Centre at the Australian National University forum include Prof Stephen Howes, Director Development Policy Centre, Australian National University; Nelson Nama, School of Business and Public Policy, UPNG Rohan Fox, Research Officer, Development Policy Centre, ANU and Marcel Schroder.

GG urges Govt to address economic situation

When officially opening the 10th Parliament session today, the Sir Bob Dadae said these include relevant amendments to legislation in sectors such as agriculture, fisheries, forestry and tourism.

He said the Government must also enable more national or landowner participation.

“There must be necessary reforms aimed at creating inclusivity and a level playing field that provides a conducive environment for small and medium-sized businesses to be established, operate and grow the economy.”