Home building in Papua New Guinea is set to accelerate sharply, according to Matthew Care, Chief Executive and founder of the real estate website Hausples.com.pg, which has an expo in Port Moresby this weekend. He tells Business Advantage PNG that the growth is being driven by pent-up demand.
The Asian Development Bank has begun its decade-long US$1 billion investment in the Highlands Highway, according to David Hill, the bank’s Country Director for PNG. He says the ADB is also planning significant investment in the health and civil aviation sectors.
LNG prices have surged but oil prices are stable, while cocoa prices are up but coffee is down. Business Advantage PNG’s monthly review of Papua New Guinea commodities and financial markets.
The government-owned Port Moresby water treatment company Eda Ranu is looking to bring more of its operations in-house. Chairperson Mary Karo tells Business Advantage PNG that preparations are also being made for APEC 2018.
The Papua New Guinea economy is unlikely to rebound strongly before 2020, according to a report by the World Bank. It forecasts steady, but unspectacular, growth.
National airline Air Niugini is helping establish Jacksons International Airport as a regional hub, according to the company’s Chairman, Sir Frederick Reiher. He told the Business Advantage Papua New Guinea Investment Conference that the choice of new routes to China were made with that strategy in mind.
The National Government has issued a Supplementary Budget to deal with the fiscal and economic issues facing Papua New Guinea. Economic commentators tell Business Advantage PNG that it is a tough budget, but flag that more measures may be needed.
Leading financiers have called for better international marketing of the country’s financial system and assets. They told the Business Advantage Papua New Guinea Investment Conference, that it is an important step towards creating more mature financial markets.
Oil prices are likely to remain volatile and LNG prices may head lower due to complex shifts in supply and demand. Other commodities seem more likely to be on an upwards trend, but the picture is patchy.
To deal effectively with China it is best to target second tier cities, David Thomas, Chief Executive of Think Global Consulting, told the Business Advantage Papua New Guinea Investment Conference in Sydney. He said the country’s GDP and middle class will double in the next decade, profoundly altering the world economy.