Economy

Papua New Guinea Economy

The economy of Papua New Guinea is decelerating, with the GDP growth rate expected to fall by half in 2016 to 4.3% and by nearly half again to 2.4% in 2017. A combination of the end of the construction phase of the PNG Liquefied Natural Gas (LNG) project and an unexpected drop in energy prices has resulted in a significant decline in business activity and state revenues. The PNG economy is in for a rough few years as it adjusts to the drop in LNG prices and awaits the start of the next major project. How¬ever, barring any further dramatic declines in energy prices, growth will remain positive and the government will be able to bring its spending closer in line with revenues.

This chapter contains interviews with Peter Lanslow, Managing Director, Steamships Trading; and James Lau, Managing Director, Rimbunan Hijau (PNG) group; and a viewpoint from Joseph Ernest Zveglich Jr, Director, Macroeconomic Research Division, Economic Research and Regional Cooperation Department, Asia Development Bank

Cover of The Report: Papua New Guinea 2016

The Report

This chapter is from the Papua New Guinea 2016 report. Explore other chapters from this report.

Interviews & Viewpoints

Sketch of James Lau, Managing Director, Rimbunan Hijau (PNG) Group
OBG talks to James Lau, Managing Director, Rimbunan Hijau (PNG) Group: Interview