Economy

Papua New Guinea has an abundance of wealth in hydrocarbons and minerals that provides it with a solid foundation for economic growth, but also leaves the country vulnerable to the volatility of global commodity markets. As such, the government is following a long-term economic development strategy that aims to expand the state’s revenue share from lucrative extractive projects, encourage offshore processing of natural resources, promote inclusive growth and attract new investments in sectors deemed to offer significant potential, notably agriculture. The government took decisive actions to prevent community transmission of Covid-19, which constrained business activity in the first half of 2020 but also left the country well placed to bounce back without widespread public health consequences. If policymakers can maintain their success in containing the virus and conclude negotiations for resource projects while channelling revenue towards other productive sectors, the prospects for investment are bright. This chapter contains interviews with Sasindran Muthuvel, Minister for State-Owned Enterprises; and Ian Ling-Stuckey, Treasurer.