Economic growth seen to be ‘relatively modest’

ECONOMIC growth in Papua New Guinea is forecast to be “relatively modest” this year, according to an Asia Development Bank publication released last week.
The Asian Development Outlook noted that PNG expected a boost from Asia-Pacific Economic Cooperation meetings and that the recent earthquake would also affect performance of the extractive sector this year.
“Most sectors are expected to expand, with the Apec meetings providing an additional boost in 2018,” it said.
“The PNG Treasury expects Apec-related growth at 6.5 per cent in administration and support services, 6.2 per cent in transport and storage, 5.3 per cent in hotels and restaurants, and 5.2 per cent in information and communication technology.
“However, a recent earthquake will hold back growth in oil and gas in 2018. Continued difficulty in accessing foreign currency and fiscal constraints will also limit growth.
“Mining is expected to grow moderately though growth may be tempered by recent earthquake damage to the Porgera mine.
“The country’s largest mines are not expected to expand production significantly, but growth is expected at the Ramu NiCo mine and some smaller mining operations.”
The report forecasted 3 per cent growth in agriculture, forestry, and fisheries sector in 2018 and 2019 as output increased for all major crops.
“Coffee production is expected to rebound in 2018 with favourable growing conditions, cocoa production is seen to increase, copra and copra oil are expected to continue to benefit from heightened international demand and palm oil production should grow modestly,” it said.