Photo Credit: Bank of Papua New Guinea
Domestic economic activity decreased in 2020, according to economic data accessible to the Bank of PNG, despite a rebound in the December quarter.
The drop, according to the Central Bank, was caused by the Coronavirus pandemic, which had a negative influence on the world economy, as well as the government's subsequent containment efforts following the declaration of a state of emergency and the closure of the Porgera mine.
The downturn was fueled by reduced production and exports of most mineral and non-mineral commodities, as well as reductions in formal private sector sales.
The Kina likewise lost value against all major currencies, causing the Trade Weighted Index to fall.
As containment measures were lifted in the second part of the year, employment increased, indicating a recovery.
With the pandemic's impact, headline inflation remained high.
Sales grew across the board, with the exception of agriculture, forestry, and fishing, which saw a drop.
Reference: The National (13 August 2021). “BPNG: Local economic activity declining”.