Radio Australia | ABC
PAPUA NEW GUINEA IS CONCERNED about the state of the Chinese economy as imports in the Asian powerhouse fell in August, prompting anxiety that China may not meet its 2012 growth target of 7.5 per cent.
“Economic activity remains weak with industrial production growth slowing, exports pretty weak,” said Tao Wong, chief China economist with, UBS Securities.
“But there are also positive signs in the sense that the property sector, both sales and construction activity, are rebounding after a number of quarters of slowdown.
“In the meantime, the government has emphasised the increase in public infrastructure spending to help support growth as well,” she said.
In the Pacific, resource-rich Papua New Guinea will be one of the biggest beneficiaries of China’s economic strength. So, if China's economy continues on a downward trend, it stands to be one of the biggest losers.
“We're watching not only China but also to see where Europe is going to see whether its going to have an impact on us,” said Ron Seddon, president of the Port Moresby Chamber of Commerce.
“We're not doing an enormous amount with China at the moment. I know that we're resource-rich here in Papua New Guinea and they're very much a user of resources. But what the Asian Development Bank and other agencies say (is) that short-term we shouldn't be overly concerned.”
According to Wayne Golding of APEC’s Business Advisory Council, “in the sense that not only do we have a financial slowdown but the pricing of commodities has also slowed down. And of course quantitative imports into China of raw materials and finished goods, are also slowing down.
“And, for Papua New Guinea, we're basically an extraction-industry-driven economy, although we have a strong domestic culture base but with the extraction industry showing contraction in price and quantitative deliveries, what we have is also a slowdown in project initiation and of course the amount of money available for exploration.”