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Bank Forecasts Growth Rate Of 4.2 Percent

by PNG Business News - July 21, 2021

Photo Credit: GPA Design Group

According to BSP Financial Group Limited (BSP), Papua New Guinea's GDP would increase by 4.2 per cent next year as the country recovers from a pandemic-induced slump.

“Economic growth is anticipated to rise to 4.2 per cent in 2022 as PNG's economy continues to recover from a pandemic-induced recession in 2020,” according to the bank's Pacific Economic and Market Insight 2021 second-quarter report.

“2021 economic growth is expected at 3.5 per cent, although the recent surge in the Covid-19 cases poses a threat.”

The reopening of the Porgera gold mine in Enga, according to the report, will pave the way for all stakeholder relationships over the following ten years. According to the study, copper and oil, two of the country's primary exports, are at multi-year highs.

Group chief executive officer Robin Fleming said: “With the recent government announcements, BSP is looking to further increase its services as PNG’s economy begins to stabilise.

“BSP is always looking at opportunities to increase and improve its service levels and customers convenience.

“We are expanding our branch networks – starting with the opening of Koroba branch in Hela last week.

“Later this month, we’re opening a larger premise of our Namatanai sub-branch in New Ireland.

“We are currently in the process of finalising the construction of a new branch in Eriku in Lae, Morobe, which is expected to be completed later this year.

“We are also looking into opening a second branch in Mt Hagen, recognising its position as being the central point for the Highlands region.

“Discussions are in progress with potential landlords.”

Aside from the new facilities, Fleming stated that the BSP has 200 registered agents in each of the 22 provinces who provided basic banking services to the public.

“Our agency network is an essential part of BSP’s commitment to the country and to the provision of banking services to the more remote communities in the country,” Flemming said. “This also represents the group’s commitment to financial inclusion.”

 

Reference:

The National (16 July 2021). “Bank predicts 4.2pc growth”.



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