In his latest Monetary Policy Statement, the Governor of the Bank of Papua New Guinea, Loi Bakani, forecasts GDP will decline by four per cent in 2020 but rebound slightly next year. He also expressed concerns about changes to the Central Banking Act.
Two new World Bank reports outline the challenges facing Papua New Guinea in the wake of the COVID-19 economic shutdowns in the Asia-Pacific region.
The Asian Development Bank is looking to provide as much as US$800 million (K2.8 billion) in new funding to support Papua New Guinea’s budget, according to its Country Director, David Hill.
Papua New Guinea’s agriculture sector has been adversely affected by the impact of COVID-19. But according to a report by ANZ Research, exports of agricultural commodities may rebound sharply next year.
With Papua New Guinea’s Mid-year Economic and Fiscal Outlook predicting government debt will rise to 55 per cent of GDP, its government has announced a supplementary budget to address numerous fiscal challenges. There are also moves for the central bank to print money to fund budget shortfalls.
The Business Council of Papua New Guinea has present its latest macroeconomic outlook, which outlines the risks faced by PNG’s economy and what business needs to recover from the COVID-19 downturn.
LNG prices have surged clawing back earlier losses, while the oil price is steady and cocoa is also strong: Business Advantage PNG’s monthly overview of commodity and financial markets.
Two new reports have outlined the revenue challenges being faced by Papua New Guinea’s government in the face of the COVID-19 pandemic.
Papua New Guinea has a ‘tax mobilisation challenge’ if it is to deal with the financial challenges resulting from the COVID-19 crisis, according to a new Asian Development Bank report.
COVID-19 may have impacted the progress of Papua New Guinea’s rollout of the UN’s Sustainable Development Goals, but Prime Minister James Marape has made it clear that sustainability and progress go hand in hand, and business must play a role.