Papua New Guinea

The cash-based economy of PNG is currently undergoing a rapid change, with increasing revenues from large liquefied natural gas projects the main driver of the banking sector’s growth. In 2013, the number of active bank accounts in PNG amounted to only 1.5m, compared to a population of 7m. However, with new money flowing into the country, the banked population is expected to continue to grow throughout 2014.

Australian Prime Minister Tony Abbott flew into Port Moresby in late March accompanied by an A-list of his country’s business leaders, with trade and investment on their minds. And, after a loaded and complicated agenda, he left three days later with an economic treaty and the basis of potentially the most productive relationship Australia and Papua New Guinea have enjoyed in years.

The transport networks serving Papua New Guinea are set to receive a $1bn overhaul as the country moves to install the infrastructure needed for the next phase of its economic development.

A landmark visit in January by Papua New Guinea’s Prime Minister, Peter O’Neill, to the semi-autonomous island province of Bougainville, has paved the way for reconciliation and renewed commercial interest in the region.

A wave of new developments in Papua New Guinea’s (PNG’s) upstream energy sector is under way, including the exploration of new fields and the signing of a deal that could affect the timing of the country’s second liquefied natural gas (LNG) project.

With 13 consecutive years of growth under its belt, Papua New Guinea (PNG) is gearing up for the next phase in its economic development, which is set to be largely defined by the country’s new role as an exporter of liquefied natural gas (LNG).