Long a mainstay of Papua New Guinea’s economy, the mining sector has not been immune to the global economic turbulence that continues to buffet the industry. Slack demand for base metal products and decreased access to cash for junior operators has curtailed exploration and development worldwide, affecting a number of PNG operators in the process. Together with local administrative and...
The long wait for the Papua New Guinea liquefied natural gas (LNG) project is now over, and the energy sector is transforming from a major investment vehicle into a primary revenue generator for the economy. In fact, the project is expected to have so much of an impact during its first full year of LNG exports that PNG was projected to lead all Asian economies in GDP growth in 2015, at nearly...
Due to several factors, Papua New Guinea is one of the least insured countries in the world. However, the low take-up of insurance is not, in this case, the result of a lack of experience. PNG has had an insurance sector for more than a century and it was once administered by Australia, an historically insurance-conscious society. The problem is more the result of geography, topography and...
Of all the subsectors within Papua New Guinea’s financial system, the capital markets are the least mature. The banks are strong, growing and becoming increasingly competitive; the insurance sector has been active for more than a century and is substantial for a developing country; and the superannuation funds are large, stable and vital to PNG society. On the other hand, the stock market has...
The banking sector in Papua New Guinea is sound, growing and remarkably profitable. Its largest and only publicly traded institution, Bank South Pacific, reports return on equity 10 percentage points higher than the large Australian banks, which are among the most profitable in the world. Furthermore, continued expansion is expected. With 80% of the country unbanked, growth is almost assured...
With a strong economy in recent years, the GDP growth rate rose to a high of 8.9% in 2011, after stagnating in the early 2000s, only to fall back in 2013 to around 5% and then rise again to more than 8.4% in 2014. Construction work on the Papua New Guinea liquefied natural gas (LNG) project led to the economic boom in 2011, while the slowdown was the result of the end of that phase and the...
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