Papua New Guinea

Papua New Guinea’s recent surge in natural resource projects has had a spin-off effect on other sectors, thus giving the country a positive near-term outlook for its economy, which is expected to see GDP growth reach 8% this year. However, the government has been advised to tighten its management of revenues from mining and natural gas projects, as well as curtail spending to ensure expansion remains stable moving forward.

Plans for a major highway upgrade deal with China and progress in transport development schemes underline Papua New Guinea’s (PNG) determination to tackle infrastructure deficits that have thus far inhibited the island’s economic growth.

Rapid expansion in Papua New Guinea’s property market is set to be further heated by new foreign investment. However, industry players reject fears of a bubble and predict that rising prices will soon stabilise.

As Papua New Guinea (PNG) seeks to diversify its economy to avoid over-reliance on gas and mineral resources, its nascent fishing and fish-processing industry is rising in potential.

With confidence in Papua New Guinea’s economy rising due to the prospects of gas and mining wealth, the country’s retail market is expected to see significant expansion in the next few years. Rising incomes and urbanisation suggest the retail and industry sector will gradually evolve away from its traditional focus on informal markets to new trends such as luxury goods and modern shopping malls and supermarkets.

Expectations that Papua New Guinea (PNG) will emerge as a major energy supplier for Asia’s growth leaders in the next decade have been heightened by reports of progress on two major liquefied natural gas (LNG) plants currently under development.