A 4.3pc growth projected

The National, Friday July 15th, 2016

THE Asian Development Bank (ADB) has projected the country’s growth at 4.3 per cent, this year.
ADB’s country economist Yurendra Basnett in presenting the bank’s Pacific Economic Monitor Report yesterday, said the growth for next year was projected to be at 2.4 per cent.
He said the drop would result from the downturn in global economy.
“Last decade, the economy grew by about 6.8 per cent on average,” Basnett said.
“With regards to the economic outlook, we expect the growth to be at about 4.3 per cent in 2016, and slowing down to 2.4 per cent in 2017. The growth is returning to its historical trend.
“Inflation has increased from 5.1 per cent last year, we expect the inflation to increase to 6 per cent this year.
“On the inflation, we expect an upward pressure, in no doubt inflation has been increasing.
“The global economy is slowing down, a lot of uncertainties out there.
“We are also seeing softness at the domestic front, in the non-mineral sector where much of the trend growth is seen, first due to the impact of El Nino last year. Productivity in the non-mineral sector had been declining year on year. Though slowing down of the growth is coupled by softness in productivity in the non-mining sector.”
The report said Papua New Guina, the Pacific sub-region’s largest economy, faced tough challenges in pursuing effective economic management.