Favourable economic growth is predicted for PNG over the next decade, beginning in 2017.
The expected growth is detailed in the Oxford Business Groups (OBG) publication The Report: Papua New Guinea 2016, which was launched yesterday in Port Moresby.
OBG Chief Executive Officer, Andrew Jeffreys, said the prediction is based on PNG becoming a favoured destination for investment in the natural gas sector.
“In the short term, the investment case currently for PNG hinges on the delivery of natural gas projects, and the reinvestments of these proceeds in infrastructure and strategic projects that will help boost domestic productivity in areas such as high technology, modern agriculture and tourism,” said Jeffreys.
The OBG share the International Monetary Fund’s (IMF) forecast that Foreign Direct Investment (FDI), as a percentage of GDP, will remain above four percent through until 2020 and will average around 3.6 percent for the decade after that.
With this level of investment, the Government is encouraged to continue venturing beyond the oil and gas sectors.
“Now our experience from resource rich nations shows that achieving employment and sustainable income growth depends on developing these non-oil sectors,” said the OBG CEO.
“And in the very short term, it makes sense to focus on down-stream processing and services activities related to these land mark industries. But at the same time, we should focus beyond them.
“There is an endless source of opportunity, much of which is apparent just by looking out the window.”
Present at the launching was Investment Promotion Authority Acting Managing Director, Clarence Hoot, New Britain Palm Oil Country Manager, Robert Nilkare, Asian Development Bank Country Director, Marcelo Minc, and members of the business community.