BPNG: Local economic activity declining


ECONOMIC indicators available to the Bank of PNG have shown that domestic economic activity contracted in 2020, despite a recovery in the December quarter.
According to the Central Bank, the decline was due to the Coronavirus pandemic that adversely impacted the global economy, the subsequent containment measures of the state of emergency imposed by the Government and the shutdown of the Porgera mine.
The lower production and export of most mineral commodities and some non-mineral commodities as well as declines in sales by the formal private sector contributed to the contraction.
The Kina also depreciated against all major currencies which resulted in a decline in the Trade Weighted Index.
An increase in employment indicated a recovery as containment measures were eased in the second half of the year.
With the impact of the pandemic, headline inflation remained elevated.
By sector, sales increased in all sectors, except the agriculture/forestry/fishing sector, which declined.