According to the BSP Pacific Economic and Marketing Insight for the 2021 December Quarter, the improvement in business confidence for year 2022 is due to business investments, mergers and acquisitions in PNG and the South Pacific.
BSP Group General Manager Corporate Bank, Peter Beswick said, “Announcements by investors in Papua New Guinea and the South Pacific has demonstrated strong international investment intentions that will lift economic activities for PNG and the South Pacific in 2022.”
He added that the mining companies continue to be an attractive investment destination and growth in mining industry is estimated to be 5.4%, which reflects the expected recommencement of Porgera and improvements in OK Tedi production and Wafi Golpu this year, 2022.
Mr Beswick added also, “The merger of Santos with Oil Search and the reopening of the Porgera mine, coupled with the PNG Government commitment to accelerate and support opportunities and development outcomes of Wafi-Golpu mine in Morobe Province will deliver significant investments with landowners and local businesses in PNG.
Furthermore, Telecommunication companies are also anticipating investment opportunities in PNG and the Pacific.
Despite the pandemic posing a significant downside risk on businesses, infrastructure and election related spending in PNG would likely provide some uplift, as well as the resource mining and communication projects boost.