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ADB: PNG Will Have A High Economic Growth Rate

According to the Asian Development Bank as indicated by its latest “Pacific Economic Monitor”, PNG will have the equal highest real economic growth rate in the Pacific this year.

“The ADB statistics highlight once again the extraordinarily bad economic impact the COVID-19 pandemic is having around the globe, producing the most challenging economic times in a century. In this global context, the PNG economy is doing so much better than most,” said Treasurer Ian Ling-Stuckey. “PNG’s forecast real growth rate of 2.5 per cent in 2021 is equal highest of the thirteen countries covered by the ADB report, with Tuvalu having a similar estimate. On average, across the 12 other Pacific countries (Fiji, Solomon Islands, Tuvalu, Vanuatu, Cook Islands, FSM, Kiribati, Palau, Nauru, Tonga, Marshall Islands, Samoa), the country average real growth rate is minus 3.4 per cent – so PNG’s 2021 real growth rate of 2.5 per cent is expected to be 5.9 per cent better. The impacts of the COVID-19 pandemic have been very severe on the Pacific. Looking backwards to last year, in 2020 the average real growth rate was minus 5.8 per cent. PNG was less severely affected, with a minus 2.9 per cent estimate.”

He added, “Across the rest of the Pacific, there is an expected average economic improvement of 2.4 per cent (from minus 5.8 per cent to minus 3.4 per cent). PNG’s improvement is expected to be more than twice as good as the Pacific average, with a lift of 5.4 per cent in growth prospects. This will provide improved opportunities for PNG’s businesses and families that have been doing it tough because of the global COVID-19 pandemic. This information from the ADB, backed by similar estimates from other independent international organisations, lifts my confidence. Under the Marape-Basil government, 2021 will be a year where PNG emerges from the global COVID-19 pandemic crisis to a stronger and better economy and budget,” stated Treasurer Ling-Stuckey.”

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