Economic recovery

PNG economy on recovery

According to the World Bank’s latest Economic Update, PNG’s fiscal deficit is estimated to have narrowed to 5.4 percent of GDP in 2022, compared to 6.8 percent in 2021 which reflects the Government’s continued fiscal consolidation and work to safeguard macroeconomic stability.

The World Bank Papua New Guinea Economic Update reports has recommended that the country must continue implementing its plan to reduce the budget deficit.

Steamships Reports Strong 2022 Results amid PNG's Economic Recovery

The company declared a total dividend of 120 toea per share, up from the previous year's 100 toea.

The hospitality and property divisions saw improvement due to the lifting of COVID-19 restrictions, with Pacific Palms property experiencing increased residential occupancy across the portfolio. Coral Sea Hotels continued to expand with the opening of new Enzo's Pizza outlets, despite food and beverage margins being compressed due to rising input inflation.

Budget Focuses On Families, Businesses

The Money Plan will also see increased development and capital funding to high priority programs and ensure sufficient funding for key social sectors to stimulate economic growth.

It also supports the successful delivery of 2022 Budget. The total Budget of K22,174.8 million, 9.3 per cent higher than 2021 Supplementary Budget.

With the revenue Envelope of K16,190.2 million, 18.4 per cent higher than 2021 Supplementary Budget, the fiscal deficit is K5,984.7 million that is 5.9 per cent of 2022 GDP.

Economic recovery ongoing

The 15 Pacific Trade Invest (PTI) Pacific Business Monitor reports that sentiments among the Pacific business decision-makers remain critical and expected timelines for economic recovery are shifting back.

The recent July survey reinforced this ongoing severity with 84 per cent of respondents reporting a negative impact

Of Pacific respondents 33 per cent were from the tourism industry, 21 per cent were from the agricultural, forestry and fishing industry and 10 per cent were from the manufacturing industry.

Government plans economic recovery

Prime Minister Peter O’Neill made this remarks after the members of parliament vote against the motion of the vote of no confidence against him (O’Neill) last Friday (July 22).  

He said as a trading nation, especially in LNG, as well as minerals and agricultural products, the country need a growing world economy, and stronger trade in commodities, and higher commodity prices, to maximise the recovery in the domestic economy