Photo credit: PM James Marape News Page
Despite no new resource projects coming online, Prime Minister James Marape claims that the country has been able to report positive growth.
According to the Asian Development Bank (ADB), the country's GDP would increase by 3.4 per cent this year and 4.6 per cent next year.
Marape stated that the government was handling a debt to GDP (gross domestic product) ratio of K51 billion, including K39 billion in obligations left by the previous administration.
“That’s how we are tracking our economy,” Marape said.
“I just want to encourage our people out there, not all is bad as it may seem.
“Without any new projects, while Porgera is coming on and others are coming on, we are still able to post a positive growth rate however small it may be but we are still posting significant growth over the last two to three years of managing our economy.
“We are rebounding at extraordinary times, hard times, Coronavirus-induced and now with the Russia-Ukraine war-induced hard times.
“In a K51 billion debt to GDP level in hard times and many nations globally also have a higher debt to GDP but for us it’s manageable.
“We are on a fiscal consolidation pathway going forward.
“The way we are posting positive growth this year at 3.4 per cent, next year at 4.6 per cent as forecasted by ADB, its an indication to our country that we are managing our economy responsibly, making interventions at the flow of the economy, especially where people, the ordinary Papua New Guineans are facing hard times.”
PNG's economy improved in 2021, according to the ADB's economic projection for 2022, thanks to a 3.7 per cent growth in agriculture, forestry, and fisheries.
Rising global commodity prices and the elimination of trade bottlenecks boosted palm oil, cocoa, and coffee output. The output of logs and fish has changed somewhat since 2020.
As mineral production increases and more normal global economic circumstances return, the ADB predicts that the country's economy will rise steadily.
Reference: Luma, Dale. The National (19 April 2022). “Marape remains upbeat about state of economy”.
