Asian Development Outlook

Inflation expected to reach 6.0%

The outlook revealed that the persistence of high inflation reflects government efforts to sustain public spending and expected kina depreciation.

The report highlighted that in 2017, recovering international oil prices are seen to compound inflationary pressure in PNG.

Rising fiscal deficits and cash flow concerns weigh heavily in the Government’s near term policy concerns.

Public expenditure is budgeted at US$4.8 billion in 2016 (equivalent to 26.2% of GDP) and revenue at US$4.1 billion.