Business Advantage International’s PNG 100 CEO Survey of chief executives in Papua New Guinea’s biggest companies has found that many business leaders fell short of their profit expectations in 2016. But the mood remains cautiously optimistic.
Economy & Investment
Interest rates are likely to remain at 6.26 per cent for the rest of 2017, and inflationary pressures are expected to moderate, according to the latest economic analysis by Singapore-based BMI Research, a unit of Fitch Group.
Demand for housing in Papua New Guinea is strong but there is a shortage of supply, according to the latest survey by Hausples, a Port Moresby-based real estate technology company.
Concerns have arisen about the foreign ownership test in Papua New Guinea after the Investment Promotion Authority (IPA) published advertisements indicating it will be taking a close look at what is happening. Observers see it as a sign of a tougher stance from the regulator.
The fall in global commodity prices has had a negative impact on Papua New Guinea’s economy. However, as Andrew Wilkins discovers in his annual economic update on PNG, adjustments have been made and 2017 looks likely to be a year of preparation for better times.
The provisional program for the 2017 Papua New Guinea Investment Conference has been released, highlighting business opportunities across PNG’s economy. The conference will be organised by the publisher of www.businessadvantagepng.com, and will be held at the Shangri-La Hotel in Sydney, Australia, on 7 and 8 September.
High debt and deficit levels are why the ratings agency S&P has kept its Papua New Guinea country rating at B+/B, with a negative outlook. S&P Director, Craig Michaels, tells Business Advantage PNG higher commodity prices are the key to lifting the rating.
Papua New Guinea’s economy performed strongly on the trade front in 2016, according to the Bank of Papua New Guinea’s biannual Monetary Policy Statement. However, this did not translate into inflows of foreign exchange, and government revenues are expected to remain under pressure.
The big mover this month was the cocoa price which was up 6.6 per cent for the month according to Kina Securities. Otherwise commodity prices moved sideways or weakened. Business Advantage PNG’s monthly overview of commodity and financial markets.
An increase in the number of protests, blockades, and inter-clan rivalry in Papua New Guinea poses ‘downside risks’ to Papua New Guinea’s economic growth recovery, according to a report by BMI Research, a subsidiary of the Fitch Ratings Agency. It warns it could lead to delays or cancellations of investment projects.