High inflation kicks in

The import-dependent economy of PNG is not exempt from the challenging global economic conditions, and Nambawan Super Limited (NSL) anticipates high inflation levels that will affect households and businesses.

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.

However, NSL welcomes the Bank of PNG's recent announcement of increasing its monthly release of foreign exchange, which is expected to ease the pressure on local businesses.

NSL is optimistic that the high commodity prices, particularly in the oil and natural gas sectors, will improve foreign currency flows and tax revenue and support the funding of spending programs that will boost economic activity and create employment.

Despite the tough economic conditions, NSL remains a long-term investor with a strong investment strategy that aims to produce good returns over many years.

While there is no guarantee of a positive interest, NSL is cautiously optimistic that as projects in PNG's oil and gas sector progress, the fund will continue generating good returns from their international and domestic investments.

NSL will continue to manage short-term market volatility and make investments that support PNG's economic growth and deliver strong returns for their members and their families over the long term.

Loop author