ANZ New Zealand Chief Economist

Fiscal consolidation needed to correct finance imbalance

Cameron Bagrie, ANZ’s New Zealand Chief Economist says in spite of the pressures on the Kina, there are some positive economic signs with forecasts that the Kina will continue to ease until mid-2018.

In an interview with Business Advantage PNG, Bagrie said PNG’s current account has gone from being in a deficit of over 50 per cent of GDP in 2012, to a surplus now.

He adds there is more stability in commodity prices, which has eased pressure on the currency in the short term.