Central Bank Governor Loi Bakani

COVID-19 Affects Global Economy

Central Bank Governor, Loi Bakani stated that the recovery reflects the impact of stimulus packages and vaccination programs, mainly in the advanced economies. 

He added that the improvement in global trade and international commodity prices would support the recovery in Papua New Guinea (PNG).

The PNG Government’s fiscal support, easing of containment measures, adjustments to the new-normal working environment, and vaccination rollout will also aid the recovery. 

Kina under downward pressure

He said the prices for PNG’s export commodities continue to remain low, while crude oil prices have dropped by more than 60 percent since June 2014.

In his Quarterly Economic Bulletin released today, Bakani said the weighted average kina prices of Papua New Guinea exports declined by 18.3 percent in the September quarter and partly resulted in a decline of 26.1 percent in the value of merchandise exports.