4.6pc growth expected

By MAX ORAKA
THE Asian Development Bank (ADB) says Papua New Guinea is expected to experience a growth rate of 4.6 per cent in 2025.
Country director Said Zaidansyah said the outlook showed that the PNG economy should improve this year and next year, driven by improved prospects in the mining sector.
“Growth slowed to 2.0 per cent last year because of the decreased production in the resource sector,” he said.
“But the report indicated that the economy is set to grow by 3.3 per cent this year due to the production resumption of the Porgera gold mine.”
Zaidansyah said the medium term outlook for the economy remained positive, with growth in 2025 forecast to expand to 4.6 percent.
The Asian Development Outlook (ADO) was launched yesterday in Port Moresby.
It is the ADB’s flagship economic publication which provides a comprehensive analysis of microeconomic issues in developing countries in Asia and the Pacific, including growth projections by country and region.
He said challenges looming included foreign exchange restrictions and frequent power disruptions in the country which continued to affect the economy.
He added that the ADB hoped to continue supporting the PNG Government with a portfolio of US$ 1.38 billion (about K5.2 billion).
Zaidansyah said the ADB was one of PNG’s largest sources of development assistance.
“We have a robust pipeline of (11) projects to make sure that more support is provided. This will be done in line with the International Monetary Fund-led (IMF) programme this year.
“The Government is currently under IMF’s extended credit fund programme and there were some requirements needed as part of the programme,” he said.
“ADB’s support will basically be taking into account or be in context with the programme.”