Positive economic growth delayed
The delay in major resource projects will continue to delay positive economic growth in the long term for PNG.
During the launching of the World Bank Economic Update Report on PNG, World Bank Senior Economist for Papua New Guinea, Ilyas Sarsenov, said PNG’s economy in the future remains positive.
The delays in major resource projects means the mid-term will remain sluggish.
“The World Bank position is that these upcoming resource projects, Pnyang, Papua LNG, is another big one, and the delays in Wafi-Golpu launch is probably not a positive development in the medium-term outlook. But overall, all of these projects, we have Frieda River and we have several other smaller resource projects in the pipeline which will support and drive the economy in the future. The only question is timing,” said Sarsenov.
“So, the World Bank sees these projects as a positive shock to the economy but in this scenario, we just decided to delay these positive shocks based on the recent developments related to this new resource projects.”
He added “We do see Governments desire to reap as much benefits as possible for the economy and so the society of PNG, especially the vulnerable ones, so they can benefit and see these revenues falling through the public service delivery in the form of better health, education, and more accessible and affordable social services in the country. Not just Port Moresby but other areas in the country.”
According to the World Bank Economic Update Report PNG’s GDP Growth is expected to fall to around 3 per cent between 2020 and 2022.