PNG economy on strong growth path

The past five years has seen the longest period of uninterrupted growth in PNG since Independence, according to the World Bank. In its half yearly assessment of Pacific economies, the Bank said PNG’s gross domestic product rose by 6% last year, the highest economic growth in the past decade. This has generated an increase in employment of about ten percent a year since 2005. The leading sectors are construction, telecommunications, mining and export-oriented agriculture (coffee, copra and palm oil).

While warm in its approval of PNG’s economic performance on most fronts, the World Bank said significant structural and policy challenges limit long term growth potential. Among “critical areas for improvement” are budget integrity, efficient service delivery, the performance of the public service, and transparency and accountability in financial management.

In order to stimulate private investment, particularly outside the mining sector, PNG’s priority was to improve the business climate, especially through encouraging more competition. There is also a need to reduce the regulatory and licensing burden, clarify property rights and maintain law and order.

Source: ‘World Bank: PNG enjoys best growth since independence’ by Brian Gomez, PNG National, 2 April 2008