GDP expected to break 4pc mark

Business

REAL gross domestic product (GDP) growth this year is projected by the Bank of PNG to be higher than Government’s 2019 Budget forecast of four per cent, says Governor Loi Bakani.
Bakani said in the BPNG Monetary Statement released yesterday that this growth was expected to be driven by full-year production of LNG and crude oil, after the disruption to production in 2018 from the earthquake.
Mineral production is also expected to contribute to this growth with higher production of nickel, cobalt, gold and copper.
Non-mineral GDP growth is expected to be around two per cent, mainly driven by increasing activity in the agriculture forestry and fishing sector, with high production of cocoa, palm oil, and log exports; and manufacturing, public utilities and the communications sectors.
The commerce, construction and services sectors are expected to grow at a lower pace following the completion of Apec meetings last year.
Projected growth in private sector credit of 7.2 per cent will support this growth in the non-mineral sectors.
Over the medium term, growth is expected to be driven by the non-mineral sectors while the LNG production is expected to be around levels before the earthquake last year.
The overall growth can be higher if Papua LNG, Pasca A, P’nyang, Frieda River and Wafi-Golpu projects reach construction stage.