2020 good year for resource sector: Executive
KINA Bank chief executive officer Greg Pawson expects 2020 to be a good year for the country’s resource sector.
Pawson also told the Prime Minister’s back-to-business breakfast in Port Moresby yesterday that “most companies will be supported by good policy”.
“We do expect and we definitely want to see in 2020 infrastructure spending take place,” he said.
“We think this is important to hold the line on the economy and for the businesses that will benefit directly from these initiatives.
“Key infrastructure areas like roads, ports, energy and telecommunication remain critical to this country.”
Pawson also highlighted challenges facing the business community and the economy.
“The availability of foreign exchange as we all know remains an issue.
“Freeing up foreign exchange will bring a positive impact on business activity.
“We saw that last year with the US$500 million (K1.7bil) sovereign bond.
“And more recently we’ve seen the US$300 million (K1bil) loan from Australia.
“We think this is important.”
He said inflation had been falling over the past two years, and expected to remain stable around the 4 per cent level in 2020. “Our exchange rate has largely been stable over the last two years.
“The fiscal deficit, government expense have been and remain high, combined with revenue shortfalls.
“On the positive side, spending on infrastructure development and rehabilitation is a key driver to the 2020 budget.”
He said global economies were regaining some growth momentum that would will underpin the regional sector.