Economy stays firm in Q1

 ECONOMIC activity remained strong in the first quarter this year but is levelling off after the construction phase of the PNG-LNG project reached its peak last year, reports the Bank of PNG.  

The bank’s Quarterly Economic Bulletin for March reports high government spending, growth in commercial banks’ credit to the private sector, increase in long-term private sector investments and growth in the non-mineral private sector contributing to growth.

“With the winding down of the construction phase of the PNG-LNG project, there are signs that the spin-off effects to the non-mineral private sector is starting to ease,” Governor Loi Bakani said.  

“The balance of payments recorded a deficit in the March quarter of 2013, mainly reflecting a decline in the international prices of PNG’s major export commodities. 

The bank noted that the kina exchange rate depreciated against the US and Australian dollars in the third quarter.