economy

PNG’s economy on right track: Economist

The EIU, which is the research and analysis division of The Economist Group, indicates that conditions in 2017 are likely to be more favorable for PNG than in 2016 when the economy was hard hit by weak global commodity prices, which weighed on fiscal and export revenue.

In 2018, The EIU expects a slowdown in the rate of expansion, as these positive factors wane and weaken global growth, resulting from a sharp slowdown in China, weigh on export revenue and investor confidence.

Why these Indian state elections matter to the whole world

As vote counts trickled in from five state elections on Saturday, one result loomed large: that of central India's Uttar Pradesh, home to more than 200 million people. The staggered five-week vote in that state alone marks the biggest election in the world in 2017.

Modi's ruling Bharatiya Janata Party, or the BJP, looks poised to take about 75% of the 403 seats on offer in Uttar Pradesh.

PM assures investors on country’s economy

During the officially opening of the two days Summit this morning, O’Neill confidently said the country’s economy is doing well.

He said PNG had faced challenges in the past years due to the drop in commodity prices.

However, he said the decrease in commodity prices did not change the main goals of the government to provide free education and health care to the people.

“With a very careful management of our economy, we did not lose grip of it and we never cut essential services to our people,” O’Neill said.

Non-payment to UN ‘another sign’ of economic crisis

Opposition Leader Don Polye said this following a suspension of Papua New Guinea’s voting right in the UNO, due to non-payment of its membership fee of US$180,000 (K571,000).

Polye claimed the suspension culminated with the country’s overseas missions being at the brink of closure associated with the same.

“The government pays more than K300 million as membership fees to similar other international organisations. I will not be surprised to see them facing the same issue in the months ahead,” Polye said.

Risky to borrow too much: NRI

Because of the high growth rate previously, and with the commencement of the LNG project in 2014, expectations were high, leading to a number of hasty borrowing decisions by the Government.

National Research InstituteI’s Senior Research Fellow and Economic Policy program leader, Dr Francis Odhuno, said borrowing itself was not bad, as long as you know you’re going to repay your loan on time and the investments you make on the borrowed money, yield high returns. However, with unforseen shortages comes the temptation to borrow more.

PNG Government expects over a billion in GST

Government estimates project GST to haul in K1,484.7 million (K1.5 billion) of the overall Tax on Goods and Services predicted revenue of K2,762.2 million (K2.8 billion).

The Tax on Goods and Services will also comprise of K691.1 million in Excise Duty, Import Excise of K300.3 million and K180.5 million in Gaming Machine Turnover Tax.

The Government states that the gradual increase in commodity prices and in the agriculture and mining sector in 2017 are expected to support income and spending on goods and services in the economy.

Kokopo sees growth in local economy

One cannot miss the roadside markets along several feeder roads into Kokopo town and around Kokopo district.

So far the Kokopo District has about 20 roadside markets completed and operating so far. They are equipped with solar lights, with rest room facilities, and tanks providing water supply.

PNG seeing ‘green shoots’ of economic recovery: O’Neill

He said with a number of major oil, gas and mining projects continuing to progress towards the final approval and construction stages, the country is in a stable economic position.

O’Neill made these remarks after the International Monetary Fund (IMF) warns on slower global economic growth this year and in 2017.

“The Bank of Papua New Guinea has pointed to private sector growing in the first quarter of 2016, compared with a decline in the December quarter of 2015.

PNG economy plans unrealistic: ADB

ADB’s Pacific Department biannual economic report; the Pacific Economic Monitor indicated that without further fiscal consolidation, PNG is likely to miss its fiscal targets.

ADB country director Marcelo Minc said the budget formulation needs to become more focused on delivering services.

He said improving infrastructure and enabling private sector participation remains central to achieving broad based, inclusive and sustainable economic growth.

“For instance increasing export competitiveness in the fisheries sector could help expand jobs.”

PNG in midst of deepening economic and financial crisis, says Sir Mekere

“Only by the Prime Minister acknowledging the nature and scale of the problem, and sharing it with Papua New Guineans, can we find solutions to fight the problem, hand in hand.