By using an expansionary fiscal policy to sustain aggregate demand amid tapering of the Papua New Guinea liquefied natural gas (LNG) construction phase, the government is relying on public markets to finance its deficit. On the central bank’s advice, the Department of Treasury has rebalanced its borrowing profile towards local-currency...
The Pacific Islands’ largest economy, PNG also poses the largest security challenges to doing business. Security firms operating locally estimate the cost of doing business in PNG is some 30% higher than neighbouring markets, excluding property, but the economic cost of insecurity is far higher. “A significant improvement in law and order (…)...
On the cusp of a major resource windfall over the next decade, the government is establishing the means to manage such inflows in Papua New Guinea’s small and open economy. Like 58 other countries, PNG is in the process of establishing a sovereign wealth fund (SWF) just as liquefied natural gas (LNG) exports begin to flow from the PNG LNG...
Australian Prime Minister Tony Abbott flew into Port Moresby in late March 2014 accompanied by a major delegation of business leaders, with trade and investment on their minds. And, after a busy agenda, he left three days later with an economic treaty and the basis of potentially the most productive relationship Australia and Papua New Guinea...
In Papua New Guinea’s small economy, trade and investment flows play a determining role in both growth and macro-economic stability. The economy is gradually rebalancing its traditional dependence on its southern neighbour Australia for both trade and investment, leveraging on Asia’s continued appetite for its natural resources. While lower...
The Papua New Guinea liquefied natural gas (LNG) investment agreement with ExxonMobil has certainly raised PNG’s profile among global investors. However, while interest has broadened, investors remain cautious of potential policy inconsistencies. Indeed, several government moves over the past year have elicited concern – even if the...
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