Economic growth expected to fall

 THE country’s economic growth is expected to decrease, with the Central Bank projecting a real gross domestic product figure of nine per cent in its September monetary policy statement. 

It is a decrease of two per cent from the 11 per projected by Treasury in its mid-year fiscal economic outlook. 

BSP’s Economic and Market Insight Report for September said the downgrade was due to lower commodity prices, the negative impact on businesses, the temporary closure of Ok Tedi mine and lower Government expenditure. The Government has approved a K1.4 billion cut in expenditure.

It plans to raise K1.1 billion in additional revenue.

Economist Paul Barker said budget adjustments were  necessary but the timing was a “little too late”.

Foreign exchange reserves are US$1,972.3 million (K5.6 billion) as at September 28, with the Bank of PNG projecting reserves to fall slightly to US$1,923.2m at the end of this year.

This is sufficient to cover 7.9 months of total import.