Economy reached K79bil in ’18

THE size of the economy has reached K79.4 billion in 2018 in current price terms, reflecting a 9.5 per cent increase from the previous year (2017), according to acting National Statistician John Igitoi.
Igitoi attributed the increase to six key areas: mining and quarry, agriculture, forestry and fishing, wholesale and retail trade, administrative and support activities and construction.
The current price gross domestic product (GDP) as explained by the National Statistical Office measures the country’s economic production valued at the prices for the particular year, meaning that changing quantities and changing prices have contributed to the growth in current price GDP.
Speaking at the release of a publication on GDP at current and constant prices from 2011 to 2018 yesterday, Igitoi said production of timely and quality statistics to demand for information was a challenge.
He said a key challenge faced by the office was coordination and collection of source data in particular the administrative data by state agencies.
“The K6.9 billion increase in current price GDP was driven by mining and quarrying (up K2.7 billion),” Igitoi said.
“Administrative and support services (up K0.9 billion), agriculture, forestry and fishing (up K0.7 billion) and wholesale and retail trade (up K0.5 billion).
“Today’s release shows that the size of the economy has grown from K31.5 billion in 2008 to K79.4 billion in 2018 in current price terms, reflecting a K152.0 per cent increase over the 10-year period.
“The K47.9 billion increase over this period was driven by mining and quarrying (up K14.2 billion), agriculture, forestry and fishing (up K7.1 billion), administrative and support service activities (up K3.9 billion) and wholesale and retail trade (up K3.7 billion).
“In constant price terms, the size of the economy has reached K62.9 billion reflecting a 0.3 per cent decrease from 2017.
“This represents a decrease in the quantity of goods and services produced by the PNG economy from 2017 to 2018.”
“The key driver for the decrease in constant price GDP was mining and quarrying down K1.9 billion, due mainly to a fall in the volume of crude petroleum and natural gas extracted.”
Planning vice-minister Dr Kobby Bomareo yesterday highlighted the February 2018 earthquake as negatively impacting the extractive sector.
“Real GDP declined by 0.3 per cent in that year,” he said.
“Production of oil and gas was greatly affected in that year.”