Bank predicts 4.2pc growth

Papua New Guinea’s economy is expected to grow by 4.2 per cent next year as the country recovers from a pandemic-induced recession, BSP Financial Group Limited (BSP) says.
The bank’s Pacific Economic and Market Insight 2021 second quarter report said: “Economic growth is projected to accelerate to 4.2 per cent in 2022 as PNG’s economy continues to recover from a pandemic-induced recession in 2020.
“2021 economic growth is expected at 3.5 per cent, although recent surge in the Covid-19 cases poses a threat.”
It said the reopening of the Porgera gold mine in Enga would set the path for all stakeholder partnerships for the next 10 years. Copper and oil, two of the country’s major exports are at multi-year highs, the report said.
Group chief executive officer Robin Fleming said: “With the recent government announcements, BSP is looking to further increase its services as PNG’s economy begins to stabilise.
“BSP is always looking at opportunities to increase and improve its service levels and customers convenience.
“We are expanding our branch networks – starting with the opening of Koroba branch in Hela last week.
“Later this month, we’re opening a larger premise of our Namatanai sub-branch in New Ireland.
“We are currently in the process of finalising the construction of a new branch in Eriku in Lae, Morobe, which is expected to be completed later this year.
“We are also looking into opening a second branch in Mt Hagen, recognising its position as being the central point for the Highlands region.
“Discussions are in progress with potential landlords.”
Apart from the new branches, Fleming said BSP had 200 registered agents in the 22 provinces who provided basic banking services to the people.
“Our agency network is an essential part of BSP’s commitment to the country and to the provision of banking services to the more remote communities in the country,” Flemming said. “This also represents the group’s commitment to financial inclusion.”