Economy

Although 2017 was another challenging year for Papua New Guinea, with subdued GDP growth against a backdrop of falling government revenues, cuts to public spending and rising fiscal challenges, economic recovery is gradually gathering steam in 2018. A steady uptick in commodity prices supported export growth and augmented the country’s trade surplus, while agriculture and mining recovered from severe drought that significantly impacted economic activity in 2016. Maintaining growth after a boom period – which was driven by construction of the country’s first major liquefied natural gas facility, PNG LNG – has proven challenging for policymakers. However, the economic slowdown has pushed the government to implement fiscal and policy reforms aimed at fostering domestic growth and the non-extractives economy. This chapter contains interviews with Charles Abel, Deputy Prime Minister and Treasurer; Hulala Tokome, Chairman, National Superannuation Fund; and David Toua, Chairman, APEC Business Advisory Council.