Government projecting lift in GDP
The government is projecting a lift in real growth to 4.4 per cent in 2019.
This is despite a drop in major export commodity prices and other challenges that have resulted in the domestic economy been subdued.
“These challenges have resulted in our domestic economy remaining subdued and, as also indicated in my end of May 2019 Economic Statement, real GDP has been revised lower for 2018 to -0.6 per cent.
On a positive note, the Treasurer said that our sovereign bond price is up strongly in secondary trading, providing PNG a significant drop in costs to raising funds internationally.
With the recovery of the LNG sector to full production in 2019, the oil and gas sector is also expected to add strongly to growth projections, hence the revised growth of 4.4 per cent for 2019.
“The Bank of PNG employment report also show some positive signs for a lit in mining sector employment,” Basil said.
However, non-mining employment remains unchanged with many challenges.
Basil said this will be a focus of the Government’s 2020 Budget Strategy, he is expected to release in coming weeks.
Despite the positives and government plans to address the challenges as outlined by Treasurer Sam Basil in the Mid Year Economic and Fiscal Outlook (MYEFO), Opposition leader Patrick Pruaitch alleges that the deficit focus in extremely conservative due to lack of government controls.
To read the full press release by Treasurer Hon. Sam Basil of the 2019 Mid-Year Economic and Fiscal Outlook Report visit the department’s website www.treasury.gov.pg