Papua New Guinea’s government has announced its Budget deficit will balloon to more than K6 billion, the biggest in the nation’s history. Treasurer Ian Ling-Stuckey has announced a well-targeted stimulus, but the International Monetary Fund needs to come to the party.
The global economic meltdown that has been triggered by the COVID-19 virus outbreak has hit Papua New Guinea hard. What are the implications for the country’s business and financial sectors?
A report on the state of the Papua New Guinea economy by the International Monetary Fund (IMF) says the Government has taken some ‘bold steps’ in its economic management. But it contends that the challenges are considerable and would be best managed with an ‘active’ approach to macroeconomic management.
The IMF’s report on Papua New Guinea has suggested that the PNG Government has responded to pressures on the budget and foreign exchange shortages. But it says that more attention should be given to the deals offered to foreign mining companies.
Leahy predicts pressure on kina after Trump election, ban on beche-de-mer to be lifted and financing boost for SMEs. Your weekly digest of the latest business news.
The 2016 Budget was one of emergency for PNG. Adjusting to a 20% collapse in revenue caused by plummeting commodity prices and an economic slow-down, the government has implemented harsh expenditure cuts.The Lowy Institute’s Jonathan Pryke examines the budgetary impact of holding the APEC summit in Port Moresby in 2018.
After years of relationship building, the BRICS nations-Brazil, Russia, India, China and South Africa-are setting up their investment bank. It’s a milestone for this strange mix of economies, but offers Pacific nations access to investment capital, says BRICS expert, David Thomas.
Halfway through the building of its major liquefied natural gas project, Papua New Guinea finds itself in a strong fiscal position, but with some key challenges.
Papua New Guinea is expected to remain the standout economy in the Pacific over the coming year, with its success having a knock-on effect on neighbouring Solomon Islands. Business Advantage summarises the outlook for the region’s larger economies.