Account surplus since 2014: Barker

ECONOMIST Paul Barker says Papua New Guinea is unusual in having enjoyed a major current account surplus since 2014.
That was largely due to exports of gold, gas, copper, oil, oil palm, coffee, cocoa and other minerals and agriculture (including forest and marine) products exceeding the value of imported goods and services.
Barker, who is the executive director for the Institute of National Affairs, told The National how the devaluation of kina would benefit the local economy and export commodities should be increased to raise revenue.
He said: “Prior to 2014, during the construction phase of multi-billion kina PNG LNG project, there was a current account deficit, as imports were, for a few years, exceeding exports.
On the other hand, over recent years foreign investment has largely dried up, and the servicing of debt, particularly that incurred for the PNG LNG development, has resulted in a net outflow of foreign currency and reserves and downward pressure on the exchange rate.
“This year has been disappointing as gas and oil prices plunged from the beginning of the year, and most of the other commodity prices except gold and a few agricultural products also fell sharply.
Gold has been the major exception, with the price rising above US$2,000 (K6,971) in August before slipping back a bit.
“However, of course, the Government chose not to renew the Porgera mining licence, so the second-largest gold mine in the country ceased production since April.”