Barker: Commodity prices have improved

By DALE LUMA
MANY commodity prices have improved significantly since mid last year, according to the Institute of National Affairs (INA).
Executive director Paul Barker said this was the result of a post-lockdown economic recovery in some countries, particularly on the success of the vaccination programme in many developed countries.
“Oil and most extractive commodity prices are much firmer, as are some agricultural commodities, including vegetable oils and some beverages, providing domestic stimulus and getting some needed income out into rural areas,” he said.
“Gold was the exception last year, when it was the safe haven much capital and prices rose to US$2,000/oz (K7,017).
“They’re well down for that peak again now, but still sound.
“Unfortunately, we still have the second largest gold mine, Porgera, out of action and likely to be for some time, despite the agreement between the Government and Barrick Niugini Ltd.”
Barker said Porgera’s closure had added heavily to formal sector unemployment which was already badly restrained by the pandemic, and salaries and wages tax from resource project and contractors, made up an important part of Government tax revenue from the sector.