Economy

Papua New Guinea Economy

Despite some weak headline numbers, Papua New Guinea’s economy is set to see a recovery in 2017. Depreciation of the kina and the shortage of US dollars have slowed imports and led to pockets of strength. Robust activity at the small and medium-sized enterprise level and in the informal sector is ongoing, while key statistics, such as the current account, are indicating a return to balance. The recent drought has come to an end, and two major mines are back on-line and ramping up production. Importantly, commodity prices seem to have stabilised globally. The near- to medium-term conditions are right for GDP to edge back up into a more comfortable range. Major gas and mining projects could contribute significantly to growth, while reforms currently being put into place are likely to add to the sustainability of the economy.

This chapter contains interviews with Thomas Abe, Managing Director, Kumul Consolidated Holdings; Dairi Vele, Secretary of the Treasury; and Sir Kostas Constantinou, Managing Director, Lamana Development.