Economic, geopolitical risks present worldwide: BSP

THE world is continuing to present economic and geopolitical risks that impact almost every country, a bank executive says.
Bank of South Pacific Financial Group Limited (BSP) chief executive officer Mark Robinson said during the BSP annual general meeting in Port Moresby on Friday that this included higher inflation, particularly for energy and food, and generally more volatile markets generally.
“Our region is certainly no exception,” he said.
“We must navigate this environment by exercising prudent risk management and ensuring our balance sheet remains strong.”
“In short, we have a responsibility for BSP to be prepared to weather any storm, including these inevitable global economic cycles, which impact our region.”
BSP chairman Robert Bradshaw added that the Pacific was exciting with a rich history, strong economic fundamentals and trade and other links between countries in the area and with countries outside.
“Of course, this region is attracting more attention these days from countries beyond the Pacific,” he said.
“Over the past several years, BSP has been operating against an economic backdrop that has been impacted by global supply chain constraints, high inflation, natural disasters and a global pandemic that affected key industries.
“Donor support was provided towards disaster and pandemic recovery efforts as well as for bridging fiscal shortfalls for the Pacific nations in the aftermath of the pandemic.
“BSP has remained strong throughout this period with solid profitability and with our total assets increasing to a record K34 billion at year-end 2022.”
Bradshaw said PNG’s natural resources projects would be a strong driver of the economy over the next 10-plus years.
“These projects represent opportunities for investment activity in the medium term and provide the impetus for broader economic activity and a solid foundation for long-term growth,” he said.