PNG Economy

He predicts a substantial surge in the country's economy over the next decade, propelled by six major resource projects.

The Prime Minister anticipates a remarkable milestone, reaching a K200 billion economy by 2030.

These significant projects include the reopening of the Porgera mine, the progression of the Wafi-Golpu mine, and the strategic development of Papua LNG, P’nyang LNG, Pasca LNG, and a promising new gas discovery by ExxonMobil in the Eastern Papuan Fold Belt.

These include growth drivers such as downstream processing in PNG natural resources, value-added manufacturing in PNG, mining and petroleum operations, strategic trade and investments, Connect PNG infrastructure, Micro, Small and Medium Enterprises (MSME) expansion, and promoting a productive, healthy, and responsible population.

Prime Minister James Marape outlined this during a breakfast session with the Lae business community on Thursday, May 25^th.

During that time, he gave a brief overview of his visit to the University of Technology the previous evening to address concerns regarding the PNG-US Defence Cooperation Agreement.

During the launch of the 9^th edition World Economic Update for Papua New Guinea 9^th today, Giorgia Demarchi, a Senior Social Development Specialist in the East Asia and Pacific region with the World Bank shared details of the report on this.

The new report highlights the potentially significant economic gains made in PNG through efforts to address gender inequality, including improvements in overall family incomes, more substantial education and training and increased economic productivity.

Speaking during a press conference today, Deputy Chairman of the Body of Christ churches, Pastor Michael Wilson raised concern about people not having enough money to take care of themselves.

The worsening economic situation in the country affecting families and communities has prompted the Body of Christ Churches to appeal to the government to seriously find strategies to improve the situation. 

The reduced spending power resulting from inflation is expected to impact discretionary product businesses, as consumers prioritize spending on essentials. NSL, which owns businesses dealing in both essentials and discretionary products, will closely monitor the situation.

The shortage of foreign currency is a major challenge for NSL as it limits their ability to make strategic investments for their members, and constrains the growth prospects of local businesses.

Treasurer, Ian Ling-Stuckey in his New Year’s message said the country’s economy is doing much better in terms of economic growth.

He added that the country expects to be a K113 billion economy in 2023, up from K79 billion in 2018 while inflation is expected to fall to under 6 per cent in 2023 – below the long-term average rate of 7 per cent.

The Treasurer further stated that PNG will start the year with the highest Kina level of international reserves in its history.

The Business Forum is underway at the Brisbane Convention and Exhibition Centre.

PM Marape said, “We are all rebounding from global economic shocks emanating from the Russia-Ukraine conflict and recovering from the once in a 100 years pandemic labelled COVID-19 which has adversely affected our lives, livelihoods and our economies. These were our major adversities globally that categorised the last three years as very hard economic years and our two countries did not escape the clutches of these adversities.”

This payment represents the taxes for 2019 to 2021 and dividend payments for the 2019 and 2020 fiscal years.

PNG Ports Managing Director, Fego Kiniafa, said these payments have been made since the declaration of the pandemic in March 2020, to help cushion the effects of the pandemic on the PNG economy.

 “PNG Ports, as a responsible corporate citizen, has been faithful in paying its dues to the State, through the Internal Revenue Commission and Kumul Consolidated Holdings,” said Kiniafa.

According to the 2015 and 2016 Gross Domestic Product reports, PNG has a real GDP of 5.3 percent, simply indicating positive activities in the country’s economy.

Gross domestic product is the summary of the total production that took place in an economy in a given period.

Tony Waisa, head of Economics Statistics Division of NSO, revealed that PNG’s economy has performed well with a 5.3 percent growth rate.

“It represents that the country has grown,” explained Waisa.

“That 5.3 percent is good. It’s showing that the country is developing.”