PNG Economy Surpasses K100b In 2022

One of the highlights of the 2022 Budget is that the economy will break the K100 billion mark in 2022, with the economy expected to grow from K93b to K101.7b, according to Treasurer, Ian Ling-Stuckey.

“Our vital non-resource economy is expected to increase by 3.5 percent in real terms, with election-related spending expected to provide a boost to activity in the non-resource economy. Including the mining sector, growth is estimated to be 5.4 percent.

This reflects the expected recommencement of Porgera and improvements in Ok Tedi production. Inflation in 2022 is expected to be 5.6 percent,” he said.

The Treasurer said the 13-year fiscal plan set out in the tabling of the 2022 budget is based on a realistic plan to return to growth in the non-resource sector to 5 per cent after deducting inflation.

The plan makes the conservative assumption of not including any of the resource projects in the pipeline until after the companies announce their Final Investment Decision.

“Even after including only growth in agriculture, fisheries, forestry, retail and wholesale trade, construction, banking and other service sectors, the economy will grow to reach K150 billion in 2028 and K200 billion in 2031. These are the benefits of a sensible, focused fiscal and growth plan,” stated the Treasurer.
 

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