Following three years of sharp appreciation, Papua New Guinea’s currency, the kina, reversed course from late 2012 as construction on the PNG liquefied natural gas (LNG) project began to taper and commodity export revenues contracted. Fiscal spending, largely financed in kina, continued to drive demand for imports and compounded the currency’s...
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...
Is it time for diversified conglomerates in Papua New Guinea (PNG) to expand or consolidate?
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...
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