Papua New Guinea

Sustained foreign direct investment has been flowing into Papua New Guinea’s (PNG’s) real estate sector ever since the $15.7bn ExxonMobil-led liquefied natural gas (LNG) project was announced. In just five years, development within the sector has surpassed total development of the past 15 years, transforming the once peripheral real estate market into one of the region’s best-performing sectors. However, growth has come at a cost.

The new government has targeted post-electoral stability with pledges to tame the budget deficit, boost infrastructure and curb expenditure. However, Papua New Guinea’s (PNG’s) opposition says Port Moresby’s plan to accept a large loan from China is an early misstep on the path to long-term growth.

The construction sector in Papua New Guinea (PNG) has enjoyed rapid growth in recent years. The industry, worth just PGK265.6m ($126.38m) in 1994, is now one of the economy’s largest contributors to GDP, valued at PGK4.81bn ($2.29bn) in 2011. But while annual growth has averaged 17.9% since 2007, there are troubling indicators of an overstretched economy.

In addition to the environmental benefits, a focus on sustainable agriculture in Papua New Guinea (PNG) is expected to generate healthier sales of the country’s biggest products − palm oil and coffee. However, a number of hurdles will need to be overcome to achieve this goal. Heavy rainfall in the first six months of 2012 has significantly impacted palm oil production, while a labour shortage is expected to affect export revenues of the coffee production segment.

The $15bn Exxon-Mobil-led liquefied natural gas (LNG) project has provided the catalyst for Papua New Guinea’s (PNG’s) transport sector’s first major overhaul since gaining independence 37 years ago. Guided by the PNG Development Strategic Plan (PNGDSP) and “Vision 2050”, LNG revenues are already funding an overhaul of national land, sea and air capabilities.

With visitor arrival numbers and tourism spend both up in recent years, Papua New Guinea’s (PNG) tourism sector is showing solid signs of consistent growth. A renewed focus on niche markets, particularly adventure and ecotourism, has seen international recognition of the burgeoning sector. However, a lack of infrastructure and security issues could frustrate further achievements.